Asian credit correspondent
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India’s largest state-owned bank and the regulator for mortgage finance companies have moved to ease concerns over liquidity at the country’s shadow banks, following the central bank’s announcement of a crackdown on the non-banking financial sector.
The Reserve Bank of India plans to give foreign investors more flexibility to invest in the country’s debt capital markets in a bid to attract long-term stable investment flows and arrest a decline in the rupee.
India last Monday took the extraordinary step of effectively seizing control of Infrastructure Leasing and Financial Services after a series of defaults by the group caused turmoil in the financial markets.