Special Liquidity Scheme for NBFCs and HFCs Through SPV

Published on July 04, 2020
Current Context: Government of India approved a special liquidity scheme for Non-Banking Finance Companies (NBFC) and Housing Finance Companies (HFC) through Special Purpose Vehicle (SPV).
Special Liquidity Scheme for NBFCs and HFCs Through SPV
  • This Special Liquidity Scheme is set up by SBI Capital Markets Limited (SBICAP) which is the subsidiary of State Bank of India (SBI).
  • The finance provided under this scheme to the NBFC s and HFCs will be used to repay existing liabilities and not to expand their assets.
  • The scheme will remain open for 3 months so that respective Trust will be able to make subscriptions and the period of lending by the trust will be up to 90 days.
  • Commercial Papers and Non-Convertible Debentures will be the instruments used in this scheme.
  • Any NBFCs including microfinance institutions which are under RBI and HFC registered under National Housing Bank are eligible to have the benefit of this scheme.

Question: 

Q.1 Name the organisation which is set up as a Special Purpose Vehicle (SPV) and is offering a special liquidity scheme for NBFCs and HFCs?
a. IDBI Capital Markets Limited
b. IDBI Capital Markets Limited
c. SBI Capital Markets Limited
d. HDFC Capital Markets Limited

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