New Delhi, July 25 (KNN) The Finance Ministry has said that five proposals involving an amount of Rs 3,090 crore had been sanctioned under the Rs 30,000 crore Special Liquidity Scheme for NBFCs and HFCs while 35 more applications seeking financing up to Rs 13,775 crore are under process in this scheme.

"As on July 23, five proposals involving an amount of Rs 3,090 crore have already been sanctioned. Further, 35 more applications have been received seeking financing up to Rs 13,776 crore, which are under process," the finance ministry said in a statement on Friday.

The Scheme has been launched 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 Scheme is being implemented by SLS Trust, the SPV set up by SBI Capital Markets Limited (SBICAP). Any NBFC including Microfinance Institutions registered with RBI under the Reserve Bank of India Act, 1934 (excluding those registered as Core Investment Companies) and any HFC registered with the National Housing Bank (NHB) under the National Housing Bank Act, 1987 which is complying with certain specified conditions are eligible to raise funding from this facility.

The Scheme will remain open for 3 months for making subscriptions by the Trust. The Scheme permits both primary and secondary market purchases of debt and seeks to address the short-term liquidity issues of NBFCs/HFCs. Therefore, those market participants who are looking to exit their standard investments with a residual maturity of 90 days may also approach the SLS Trust, the release added.