Markets seeks to distinguish between solvency, governance & liquidity issues

The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman chairing the Pre-Budget consultation with representatives from Financial Sector & Capital Markets, in New Delhi on June 13, 2019. The Minister of State for Finance and Corporate Affairs, Shri Anurag Singh Thakur is also seen.

With a view to give boost to Indian markets, the representatives of Financial Sector & Capital Markets submitted several suggestions to Union Finance Minister Nirmala Sitaraman, concerning infusion of capital in niche/regional banks, enhanced role of Financial Sector Development Council, on the NBFC Sector.

They stressed the need to distinguish between solvency, governance & liquidity issues was mentioned along with creation of dedicated liquidity window for NBFC sector, review of interest rates on Govt.’s Small Savings Schemes, review of banking NPAs provisions through setting-up a Committee, enhancing financial literacy programmes and funding.

Nirmala Sitharaman today held her third Pre- Budget Consultation Meeting with the stakeholders from Financial Sector and Capital Markets here today. The main areas of discussion during the Meeting included issues relating to the Capital Markets, Financial Sector, Non-Banking Financial Companies (NBFCs) and Alternative Investment Funds (AIFs) among others.

They too suggested  incentivising agricultural marketing, setting-up of Debt Exchange Traded Fund, domestic capability building in Audit & Credit Rating, making available trade licence online for MSME sector, provision to ease liquidity pressures created due to insolvency, rationalisation of various taxes like Security Transaction Tax (STT) in capital market, setting-up of a separate bond exchange, allowing banks to invest in InvITs to access broader market and make Corporate Tax progressive to incentivise MSME Sector among others.

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