Lack of real-time data on NBFCs (non-banking financial companies) has pushed authorities to develop a system for more information about the sector as the government and the RBI are creating a new data source on such companies, The Indian Express reported. The NBFC sector has been witnessing liquidity crunch following the IL&FS crisis since August last year. \u201cThe government, along with the RBI, is working for developing a source of data through the strengthening of institutional mechanism,\u201d Economic Affairs Secretary Subhash Chandra Garg said at a CII summit on NBFCs. Garg said that the government was looking to connect with a representative of NBFCs as a sector during the IL&FS issue to understand the developments in the sector, but to no avail. \u201cForget about daily data points, which are needed, we didn\u2019t even have monthly data regarding the performance of NBFCs,\u201d Garg said. He also said that NBFCs should work for developing an instrument to channelise household savings into the sector. \u201cAssets under management of MFs crossed Rs 26 lakh crore, showing that investors are ready to invest in risk-based alternative assets like debt and equity. That trend is driven more by the trust that their funds are safe,\u201d Garg said adding that NBFCs too will have to create a similar trust where the intermediaries have a significant role. He also said that regulations have to be tweaked for the domestic and foreign funds to invest in the NBFCs. NBFCs\u2019 loan book is Rs 22 lakh crore even as housing finance companies\u2019 (HFCs) loan book stands at Rs 9 lakh crore (also part of the definition of NBFCs) against Rs 90 lakh crore assets of banks. Kotak Mahindra Bank\u2019s MD and CEO and president-designate of CII Uday Kotak said the regulators and NBFCs have to look at the signals from the risk capital providers over the NBFCs they are investing in. \u201cDo not wait disproportionately long to get the best price to raise the capital when the sun is shining,\u201d Kotak said.