This case attempted to demystify the IL&FS financial crisis of 2018, which grappled with various Indian financial markets. The case presented immediate probing issues to the investors as key stakeholders, the first being the factors that played the role of catalyst leading to a blow-up of the IL&FS financial crisis and the second being the identification of preventive measures to create a robust vigilance system. The case also outlined how the default of IL&FS on some of the debt instruments triggered the domino effect in the money market, equity market, bond market, and mutual funds in the ever-increasingly connected financial world. It highlighted crucial internal and external factors which acted as key drivers in the IL&FS financial crisis. This crisis also exhibited strong interconnection of financial markets as troubles in one market spread across other markets. The study brought to the fore the role of regulatory bodies, independent audit agencies, and credit rating agencies in the development of such a crisis. It contributed by creating a critical platform to raise essential points for further discussions related to the emergence of the IL&FS crisis, the factors driving this crisis, and its impact on the sustainability of the financial ecosystem of India.

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