Mumbai: Foundation of Independent Financial advisors (FIFA) has written to finance ministry, Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi) urging that central bank buys illiquid bonds from fund houses.
The distributor body said that special liquidity window opened by RBI is only benefiting better rated papers as the banks are lending only against AAA rated papers. "Liquidity has been provided via banks and the banks have provided liquidity to AAA segment of the market and not to the space which is stressed and facing liquidity issues," said FIFA in the letter.
The central bank on 27 April had opened a ₹50,000 crore special liquidity window for mutual funds. As of 4 May according to RBI the mutual funds have