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MFIs to require Rs 2,000 cr for license clearance

By Religare
|

The Indian Government has said that microfinance companies may have to arrange around Rs 2,000 crore in the form of domestic equity from the local investors in order to get small finance licenses from Reserve Bank of India, media reported.

As per reports, Microfinance Institutions (MFIs) with their payment bank licenses will be competing for space in the coming 18 months to raise equity from market which will further put pressure on the local equity market.

 

Commenting on the issue, IFMR Capital Managing Director & Chief Executive Kshama Fernandes told the media, "This is clearly going to be a challenge and one that all MFIs are well aware of. It is expected to take up a lot of management time over the next 6-9 months. Sources of domestic equity are few and the demand is high. New domestic equity investors will have to come in as promoters, working alongside existing promoters."

"Sources of domestic equity are few and the demand is high. New domestic equity investors will have to come in as promoters, working alongside existing promoters," she added.

Story first published: Tuesday, September 22, 2015, 23:00 [IST]
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