India barred lenders from investing in alternative investment funds that hold stakes in their borrowers, the market is counting the cost. The Reserve Bank of India (RBI) said the move is designed to prevent an unstable build-up of assets in the country’s financial system.
“This is a sledge hammer to the industry,”says Vinod Joseph, Partner, Economic Laws Practice (ELP) in the Bloomberg article, India’s Crackdown on Financial Risks Puts Industry on Watch by authors Preeti Singh, Saikat Das & Advait Palepu.
