NBFCs Restructure Books to Avoid RBI Rules

Indian groups are restructuring NBFC and core investment company balance sheets to fall outside RBI definitions and escape registration and compliance. NBFCs inflate non-financial income, such as commodity trading, while CICs dilute group equity exposure. The RBI has sent notices asking why firms have not registered. The restructuring affects entities with assets of at least 100 crore or 1,000 crore.