Mutual funds have recently increased purchases of securitized debt from non-banking finance companies (NBFC), which now sell fewer short-duration commercial papers to raise cash after asset-liability mismatches and IL&FS defaults last autumn curbed fund flows to the sector.
Compared with November, mutual fund purchases of NBFC securitized loans climbed more than 65 per cent in February, with collective industry exposure to these instruments pegged at Rs 95,294 crore.
