Amit Dalal, executive director at Tata Investment Corp, spoke to CNBC-TV18 about the fundamentals of the equity market and his views on the non-banking financial companies (NBFCs).
"The liquidity crisis will be now polarized between companies which have good balance sheets, good managements, have good assets on their balance sheet will not have a problem in recycling their liabilities," said Dalal on Tuesday.
“But the one which have problem, the companies which banks do not want to increase their exposure to, will find it difficult to substitute their commercial paper (CP) issuance with other instruments,” he added.
Talking about the commercial paper issuance of NBFCs, Dalal said, “I find it extremely worrisome that commercial papers have been allowed to be issued to such a great extent by NBFCs.”
“If commercial paper issued by NBFCs, I think government will come down and limit it to a percentage of debtors due in the next 3-6 months. Beyond that I do not think NBFCs have any case for issuing commercial paper on rolling basis,” he further added.
First Published: IST