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- India’s financial markets are in the throes of a bear hug. And the core of the crisis that has shaved off Rs8.48 lakh crore ($116.33 billion) in investor wealth in the last ten days is Mumbai-based Infrastructure Leasing & Financial Services (IL&FS).
IL&FS is an over 30-year-old infrastructure lending giant that claims to have helped develop and finance projects worth $25 billion in Asia’s fastest-growing economy.
The company recently defaulted on a few payments, which means it has run out of cash. This spells trouble not only for the firm but also for its investors, which include banks, insurance companies, and mutual funds.