Apart from this, complex and synthetic derivative products which were at the core of the global crisis are also not presently permitted in India. Further, explicit regulations have been put in place to ring fence NBFCs from the adverse impact of cross border linkages and minimizing the financial contagion.
(For example, NBFCs can take equity and fund based exposure while investing overseas within a limit liked to NOF). They are not permitted to provide implicit support such as guarantees or letters of comfort.