Stay updated with breaking news from Eshwar Karra. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Kotak Alternate Asset Managers (previously Kotak Investment Advisors), the alternative investment arm of Kotak Group, which hit a first close of its second special situation fund ......
The Reserve Bank of India said the move is designed to prevent an unstable build up of assets in the country’s financial system. But, lawyers and analysts say alternative investment fund managers could see costs ramp up and the rules will make it harder to raise cash in the future.
RBI has been concerned about round-tripping of potentially bad loans, rise of unsecured lending and heavier linkages between AIFs and regulated entities, all of which can “potentially build up stress in the financial sector,” said Abizer Diwanji, financial services leader at Ernst & Young India.
India Business News: India's central bank has imposed new rules barring lenders from investing in alternative investment funds (AIFs) that hold stakes in their borrowers.
A week after 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 said the move is designed to prevent an unstable build up of assets in the country’s financial system. But, lawyers and…