.....The real problem arises when stocks actually fall. When prices tank in a short-time, NBFCs which have funded investors are forced to sell to recover the money financed.” “This accentuates the fall in stock prices, resulting in near-collapse of some stock.” These days, margin sales by NBFCs are causing frequent cases of instability in the market. At present, deposit-taking NBFCs are regulated by the Reserve Bank of India (RBI), and as far as the non-deposit taking NBFCs are concerned, it is a grey area,......
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