Aug 02, 2022

Govt or RBI support need for a buyer of last resort under stress, says Ananth Narayan

Ananth Narayan, Professor at SPJIMR spoke about the move and said, “If it is the last resort buyer — under extremely stressful situations — I don’t see how we can do this without either the government or central bank getting involved. My view is that for something like this to work as a last ditch back stop you will require either GOI or RBI to be there, it is not enough, if it is just market participant’s pool and you can do that for normal market liquidity, for secondary market liquidity under normal circumstances.”

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