Policy makers must reassure the market that they are not letting imbalances get out of hand. We need to have a good mix of policies. To begin with, we need to ensure flexibility in the financial system and the economy.
It is interesting to note that, as of August 2007, in the category non-deposit-taking systemically important (ND-SI) NBFCs, the NBFCs with some element of foreign ownership had an asset base of Rs. 87,542 crore and accounted for more than 26 per cent of the total assets of this class of NBFCs.