Large investors shy away from mutual funds holding ‘risky’ NBFC debt securities

Large institutional investors have become averse to being exposed to the debt securities of nonbanking finance companies (NBFCs), perceived to be risky in the wake of the liquidity crisis that has engulfed the sector. At least six top companies, including those in the Tata Group, have told mutual funds that they will not invest in liquid schemes that hold ‘risky’ NBFC paper, said three people aware of the development. The move will further hurt the borrowing plans of these NBFCs, already starved ..
 

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