The Reserve Bank of India may stop private equity firms from controlling more than one non-banking financial company, according to a Reuters report on 12 November 2026 that cited two people familiar with the matter. The report said PE control of multiple NBFCs is under review. Reuters said the Reserve Bank did not respond to a request for comment. No official circular or direction has been issued on the proposal, and this article reports the Reuters account rather than a notified rule.
The report comes in a week of large primary investments in Indian NBFCs and follows other ownership and supervisory moves, including Bain Capital’s planned controlling investment in Manappuram Finance, TPG’s commitment to Arka Fincap, and the Reserve Bank’s grant of an NBFC licence to MobiKwik.
What the Reuters report said about PE control of multiple NBFCs
According to the people cited by Reuters, the central bank is considering a rule under which a private equity firm would not be allowed to control more than one NBFC. Control was described as a stake of 25% in a listed NBFC, or the ability to appoint a majority of directors, or to influence management or policy. One of the people said a holding of 15% or less may be treated as a financial investment and face less scrutiny.
The report said a draft could be issued after public consultation, possibly early next year. It is not a final regulation. Official RBI communications, when they are issued, are published on the Reserve Bank website. Recent operating controls on the sector, such as API access rules for banks and NBFCs, have been issued as formal directions; this proposal has not.
Why the report has landed now
Reuters noted that Bain Capital’s agreement to acquire a 41.7% stake in Manappuram Finance was conditioned on the firm divesting a 93% holding in Tyger Capital, formerly Adani Capital. Grant Thornton figures cited in the report put private equity investment into India’s financial sector at USD 5.4 billion last year and USD 3.6 billion in the year to the end of September. The Indian Venture and Alternate Capital Association has been lobbying on the issue. Siddarth M. Pai of the association was reported as saying that the industry has been making representations to the regulator; those remarks were reported speech, not a direct quotation released by IVCA in this coverage.
Key takeaways
- A Reuters report, citing two unnamed people, said the Reserve Bank may stop private equity firms controlling more than one NBFC. The central bank did not comment.
- This is a media report of a possible draft after public consultation, not a notified circular or direction.
- Control was described as 25% of a listed NBFC, a majority of directors, or influence over management or policy; stakes of 15% or less may be treated more lightly, according to one person.
FAQs
Has the Reserve Bank issued a circular on this? No. Reuters asked the Reserve Bank for comment and said it did not receive a response. Until the central bank publishes a draft or a direction, the account should be read as a report based on unnamed sources.
Featured image: Reserve Bank of India building, Fort, Mumbai. Photo: Anurag Vijay 03, Wikimedia Commons (CC BY-SA 4.0).
