India says it will ensure liquidity for non-bank finance firms, mutual funds, smaller businesses

[MUMBAI] India's Finance Minister said on Monday the government was ready to take all measures needed to ensure liquidity is available to non-banking financial companies (NBFCs), mutual funds and small and medium-enterprises.

In a tweet early on Monday morning, finance minister Arun Jaitley said "The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the Mutual funds and the SMEs."

The statement comes after the Indian stocks, forex and bonds markets turned volatile on Friday on worries over liquidity concerns around India's non-banking finance companies, after a series of defaults from India's Infrastructure Leasing & Financial Services spooked investors.

The Reserve Bank of India and market regulator Securities and Exchange Board of India, sought on Sunday to reassure investors saying they were closely monitoring developments in financial markets and are ready to take appropriate steps if needed.

REUTERS