Key Points
Shadow banks have become the latest target, after the Reserve Bank of India this week limited lending by firms including JM Financial Products Ltd..
The measures come after the banking regulator barred an affiliate of fintech giant Paytm from accepting fresh deposits, while the capital markets watchdog urged mutual fund sellers to safeguard investors against excessive froth in small-cap stocks...
More such moves may be on the cards as the RBI completes inspections of some major non-banks engaged in equity markets financing, according to people familiar with the regulators thinking..
India is booming on all fronts, and regulators are trying to remove some exuberance from the financial system while ensuring banks and other players have a better handle on potential risks..
The central bank barred JM Financial from extending loans against shares and bonds after an inspection revealed serious deficiencies in financing IPOs and bond offerings, according to a statement Tuesday..
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