NBFCs

The Reserve Bank of India (RBI) has issued guidance urging microlenders and non-banking financial companies (NBFCs) to closely monitor potential stress in their loan portfolios. The directive emphasizes early identification of financial distress, enhanced reporting, and proactive risk mitigation to prevent asset quality deterioration. With microfinance institutions serving vulnerable segments, the central bank aims to safeguard both borrower welfare and systemic stability.

SBFC Finance has secured a significant vote of confidence from two marquee investors—Tata AIA Life Insurance and Temasek—marking a pivotal moment in the non-banking financial company’s growth trajectory. The strategic investment strengthens SBFC Finance’s capital base at a time when demand for structured credit among small businesses is rising steadily. The transaction underscores increasing institutional interest in India’s retail-focused NBFCs, particularly those with disciplined underwriting and scalable business models.

The Securities and Exchange Board of India (Sebi) has introduced a new mandate requiring market participants to disclose securitised exposures with greater transparency. The move aims to strengthen investor protection, enhance market integrity, and provide regulators with better visibility into risk concentrations in the financial system. The directive covers all entities involved in securitisation, including banks, non-banking financial companies (NBFCs), and asset reconstruction companies.