MF funding to NBFCs falls to 18-month low of Rs 86,779 crore in June

Experts said while market perception on NBFCs remains weak, new valuation norms for liquid schemes have also contributed to the fall in MF funding

The funding challenges for non-banking financial companies (NBFCs) continued to get more intense with mutual funds' (MFs') deployment towards the short-term debt market of NBFCs dropping by another 15 per cent to Rs 86,779 crore in June. 

Data sourced from the Securities and Exchange Board of India (Sebi) showed that fund deployment was the lowest in 18 months.

The recent announcements made in the Budget and the indirect liquidity window given by the Reserve Bank of India (RBI) have failed to improve investor sentiment on NBFCs. “These measures have brought some stability at the systemic level, which can be seen