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Special Liquidity Scheme for NBFCs and Housing Finance Companies

  Aug 20, 2020

Special Liquidity Scheme for NBFCs and Housing Finance Companies

Q. Why is this in news?

Q. What are the basic features of this scheme?

Q. Who is eligible for the scheme?

Q.Is there any other eligibility criteria?

A. Yes , 

Q. Which is  Implementation body for it? 

  1. SBICAP which is a subsidiary of the State Bank of India has set up a SPV (SLS Trust) to manage this operation.
  2. The SPV will purchase the short-term papers from eligible NBFCs/HFCs, who shall utilise the proceeds under this scheme solely for the purpose of extinguishing existing liabilities.
  3. The instruments will be CPs and NCDs with a residual maturity of not more than three months and rated as investment grade.

Q. Till when will it remain open?