New Delhi : Sebi has sought details from mutual funds about their exposure to all NBFCs and housing finance companies, amid concerns over liquidity in the system, according to sources. In recent days, shares of Non-Banking Financial Companies (NBFCs) and housing finance companies have taken a beating against the backdrop of IL&FS group entity defaulting on its debt obligations, triggering fears of liquidity crunch. The Securities and Exchange Board of India (Sebi) has sent letters to mutual funds seeking details about their exposure to all NBFCs and housing finance companies, regulatory and industry sources said. The companies include DHFL and Indiabulls Housing Finance, they added.
Mutual funds have significant exposure to these companies and NBFC companies as a whole. On Thursday, shares of NBFCs and housing finance companies tumbled up to 8.5 per cent on worries over liquidity. The scrip of DHFL declined nearly 5 per cent to close at Rs 290.15 while that of Indiabulls Housing Finance plunged over 6 per cent to end the day at Rs 937.20 on the BSE. Rating agencies — Crisil, Icra and Care — has re-affirmed the long-term credit rating of Indiabulls Housing Finance at the highest rating of ‘AAA’ with stable outlook. IL&FS Financial Services, a group company of IL&FS defaulted on one of its commercial paper (CP) issuances due for repayment on Monday. This was the third default by the company.
