IL&FS rot needs to be stopped from spreading
A tad late, but the message is finally reaching India’s regulators: Infrastructure lender IL&FS is not a business that can be allowed to fail without consequences. Some of the group’s finance companies are now missing repayments on short-term paper, even as the unlisted parent’s owners, including state-run Life Insurance Corp. of India, dawdle over an emergency infusion of funds. The bloodbath was sparked by the money market, where a mutual fund sold Dewan’s notes at a yield of 10.75 percent, compared with 8.6 percent for other corporate debt locally rated as AAA. DSP Mutual Fund, which is exposed to IL&FS’s securities, said its sale was a response to rising interest rates rather than a view on Dewan’s creditworthiness. But the poorly run state-owned banks still get 78 percent of sticky household deposits and have access to both interbank liquidity and the central bank’s emergency lines.
Alternate investment funds: An industry at risk of death by a thousand circulars
NCLAT directs distribution of ₹16,361 cr. to IL&FS creditors on pro-rata basis
Amid liquidity crisis, mutual funds preferred state bonds over central papers
IL&FS crisis fallout: Sebi tightens disclosure norms for credit rating agencies
Discover Related
Supreme Court asks Mahua Moitra to move SEBI for transparency in FPIs, AUFs
Will FIIs return? Understanding the big sell-off in Indian stock markets
Driven by rapid growth, India's financial system more resilient and diverse: IMF
Foreign investors jilt India as growth falters and China beckons
IndusInd Bank is well-capitalised, no need for depositors to worry: RBI
The state where Ponzi schemes thrive, but mutual funds barely exist
The IndusInd Bank share crash holds many lessons: Most of all for RBI
Why are retail investors reducing exposure to mutual funds? Experts weigh in
AI-focused firms to corner a bulk of Bessemer Venture’s new $350 mn India fund
Derivatives debacle: IndusInd Bank stock crumbles, investors panic
Why are some investors choosing fixed deposits over SIPs?
FPIs continue to snub consumption, even after budget incentives
IBC Weekly Round-Up [3rd March To 9th March, 2025]
IndusInd Bank shares plunge as RBI trims extension for CEO