Finance minister Nirmala Sitharaman on Wednesday announced a fresh set of measures for non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro finance institutions (MFIs) as part of the government’s economic rescue package for the covid-19 crisis.
It allocated an amount of ₹30,000 crore for the purchase of investment grade debt of NBFCs, HFCs and MFIs. The second measure is a partial guarantee scheme worth ₹45,000 crore on primary market paper issued by NBFCs.
Out of the two measures, the first one affects debt funds the most, as it allows for both primary and secondary markets purchases.