SLS Trust
Governance Structure
- Government of India (“GoI”) launched the special liquidity scheme (“the Scheme”) for NBFCs/HFCs as a part of Atmanirbhar Bharat initiative of the Prime Minister.
- The Scheme was launched with the purpose to improve the liquidity position of NBFCs/HFCs through a Special Purpose Vehicle (“SPV”) to avoid any potential systemic risks to the financial sector.
- The total corpus of Rs. 30,000 crore which was provided by RBI and guaranteed by GoI.
- SLS Trust, the SPV set up by SBI Capital Markets Limited (“SBICAP”) was entrusted with implementation of the Scheme.
- The Scheme was open for 3 months from July 1, 2020 to September 30, 2020 for making subscriptions by the Trust.
- The period of lending (CPs/NCDs of NBFCs/HFCs for short duration of upto 90 days) by the Trust was for a period of upto 90 days.
- In the limited period of 3 months, the Trust received 74 applications aggregating to Rs. 39,219.50 Crore from NBFCs/ HFCs.
- The Investment Committee of the Trust provided approval to 39 proposals worth Rs. 11,120 Crore for availing liquidity under the Scheme. At the end of the Scheme, 25 applications availed the Scheme where total amount of Rs. 7,227 Crore was disbursed by the Trust.
- All investments made by the Trust were duly repaid by the end of the Scheme and there were no defaults.
- GoI has been highly appreciative for the end-to-end execution of the Scheme ensuring highest level of credit assessment and risk management at all stages and at the same time ensuring that the NBCFs/ HFCs were supported adequately.
