📝 Executive Summary
India’s largest non-banking financial company saw its shares tumble after the Reserve Bank of India released draft guidelines to tighten lending standards. The proposed rules target unsecured loans by increasing risk weights and provisioning requirements, which would directly pressure NBFC profitability. Investors reacted swiftly, rotating out of shadow bank stocks and into government bonds, dragging the broader Nifty index lower. The RBI aims to curb excessive credit growth and prevent systemic risk, but the near-term outlook for NBFCs remains cloudy as margins compress. Analysts expect well-capitalized players to navigate the changes better, while smaller firms face funding challenges.