India Plans Limits on PE Control of Lenders

India is drafting new rules to prevent private equity firms from holding controlling stakes in multiple non-bank lenders. The central bank wants to reduce potential contagion risks. Smaller minority investments will face less scrutiny under the proposed framework.

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FILE PHOTO: A man puts up his hand in front of Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, June 6, 2025. REUTERS/Francis Mascarenhas/File Photo

India is drafting proposals to bar private equity firms from controlling multiple non-bank lenders to limit contagion risks. The measures target ownership stakes exceeding 15% across several financial institutions. The rules protect the broader financial sector as foreign investment surges.