Proposals of NBFCs, HFCs worth Rs 6,399 crore Sanctioned: FM

15 proposals worth Rs 6,399 crore of stressed non-banking financial companies (NBFCs) and housing finance companies (HFCs) have been sanctioned under the special liquidity window opened to support firms facing distress. 37 more applications seeking financing of up to Rs 11,037 crore are under process. “The Special Liquidity Scheme (SLS) of Rs 30,000 crore was announced as a part of the #AatmanirbharBharat package with an aim to improve the liquidity position of NBFCs and HFCs,” Finance Minister Nirmala Sitharaman said. The scheme launched on July 1 permits both primary and secondary market purchases of debt and seeks to address the short term liquidity needs of NBFCs and HFCs. Any NBFC including microfinance institutions registered with RBI and any HFC registered with the National Housing Bank, are eligible to raise funding from this facility subject to certain conditions. The Reserve Bank of India has provided funds for the scheme by subscribing to government-guaranteed special securities issued by a trust set up by SBI Capital Markets Ltd (SBICAP). The scheme is being implemented by SLS Trust, the SPV set up by SBICAP. The special liquidity scheme is open for three months for making subscriptions by the Trust. Under the scheme, the government will provide an unconditional and irrevocable guarantee to the special securities issued by the Trust. The instruments will be commercial papers and non-convertible debentures with a residual maturity of not more than three months and rated as investment grade.