SBI Cap to float special purpose vehicle for NBFC debt purchase, says RBI

The government, on May 21, had said it will support creating a SPV that will buy such papers from NBFCs

The Reserve Bank of India (RBI) on Wednesday said SBICAP, the capital markets wing of State Bank of India (SBI), will set up a special purpose vehicle (SPV) to purchase the short-term papers, maturing within three months and rated as investment grade, from non-banking financial companies (NBFCs).  

“The facility will not be available for any paper issued after September 30, 2020 and the SPV would cease to make fresh purchases after September 30, 2020, and would recover all dues by December 31, 2020; or as may be modified subsequently under the scheme," the central bank said in a statement on its