These effects were powerfully revealed during the global financial crisis in the form of dislocation of asset-backed commercial paper (ABCP) markets, the failure of an originate-to-distribute model employing structured investment vehicles (SIVs) and conduits, “runs” on MMFs and a sudden reappraisal of the terms on which securities lending and repos were conducted. 37.
Now you may say “Yes, we agree that the NBFCs need to be regulated. But, why are you saying that there are challenges? Don’t you have the law enabling you to regulate them?” 38. Yes, we have the law. And it has evolved over the time. The challenges today are as follows: 39.