MUMBAI : The stock market regulator is reluctant to grant a moratorium on ₹1.5 trillion worth of commercial paper and corporate bonds maturing in the first quarter, two people aware of the development said, putting a big chunk of them in danger of possible default.
A large number of issuers, facing impaired cash flows and bleak refinancing prospects due to the covid-19 outbreak and the ensuing nationwide lockdown, had approached the Securities and Exchange Board of India (Sebi), seeking approval for extending the maturity of the paper, according to the people cited above.
India entered a 21-day lockdown beginning 25 March onwards and many states have already extended the lockdown beyond the initial period.