'Risky loans': How RBI's new rules may impact shadow lenders

India's central bank has imposed new rules barring lenders from investing in alternative investment funds (AIFs) that hold stakes in their borrowers. The move aims to prevent an unstable build-up of assets in the financial system. However, lawyers and analysts argue that the rules will increase costs for AIF managers and make it harder to raise cash in the future. The top seven shadow lenders in the country had invested around $1.35 billion in these AIFs, according to their annual reports.

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