A bird flies past the Bombay Stock Exchange building in Mumbai, India, January 31, 2020. REUTERS/Francis Mascarenhas/File Photo
The blue-chip NSE Nifty 50 index fell 1% to 14,286 and the benchmark S&P BSE Sensex was down 0.8% at 48,635.84 by 0506 GMT. The Reserve Bank of India is expected to set out proposals in a discussion paper this week, recommending that bigger shadow banks hold a share of deposits in cash, gold or government securities, Reuters reported.
“Any such strict regulations if implemented at a time when economic growth is very weak could severely constrain ability of NBFCs to lend and further jeopardise growth.”
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