Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I am a law graduate and Company Secretary with 30+ years of experience in corporate governance, regulatory compliance, and legal matters. My work experience has been in the BFSI sector, ranging from Asset Management (mutual funds/PMS), PE Funds, FII institutions, Payment systems, and NBFCs, with NBFCs being the most recent. My forte has been driving policy change and securing regulatory approvals/ licenses from Securities and Financial Market regulatory Authorities.

As regards the NBFCs, I was instrumental in setting up a robust governance model by redesigning operating Policies and standard procedures, conducting compliance training, and conducting compliance audits and reviews in line with the applicable regulatory regime. In addition, I conducted a Compliance Risk Assessment to ensure the effective implementation of all Rules, Regulations, and Guidelines. As a Board advisor, guided management on the causes and effects of new rules, amendments, etc.

Q2. Looking at the next 3 years of Indian NBFC regulation, which specific 'policy execution gap' will separate the survivors from those forced into distressed M&A?

To my understanding, the regulator has a sharp focus on the developments in the non-banking space. In this sense, it does assimilate information/data through various filings and also by conducting regulatory inspections on the top 500 NBFCs. There are other NBFCs that are not very active, but these are either captive in nature or do not define any significant trends.

There could be several factors that could trigger opportunities for M&A. But here I would restrict myself to just two factors, which are, to my mind, potential. The first one is technology. Technology is playing a prominent role in the lending space. The regulator is keen that the Regulated Entities (REs) adhere to all data privacy and data protection norms, as well as to the overall conduct of business (Digital lending). The second one is equity infusion. The equity infusion is an indirect need to meet critical regulatory requirements on asset allocation, provisioning, etc.  

Q3. Can you quantify the valuation premium firms can expect if an NBFC moves from manual to fully automated RegTech?

In my view, the valuation is an outcome of several parameters. Automation enhances valuation, but it is not the sole criterion. To mention a few, a strong customer base, a product that meets customer needs, a satisfactory regulatory inspection, etc., play a significant role in value creation. There are several recent instances that validate my point.

Q4. In your experience, what is the 'breaking point' where a FinTech’s growth velocity outpaces its GRC framework, and what is the first metric that starts to slip?

In my view, especially in retail lending, the key is the customer interface and interaction. If in a FinTech, the model is 100% digital, the inherent risk is high. If the GRC framework is not built to address that, the impact can be catastrophic.

Q5. With the RBI effectively reinstating Default Loss Guarantee (DLG) in early 2026 but requiring it to be included in Expected Credit Loss (ECL) calculations, how does this change the 'valuation math'?

My limited view on this is as follows. The Fintech players seem to be cheering this because of the categorical confirmation that the loss guarantee will be recognized in provisioning. But whether it really brings about a considerable change in valuation has to be seen. 

Disclaimer: The financial professional can share the exact impact as per INDAS.  

Q6. As of January 2026, the RBI mandates Escrow accounts for all co-lending cash flows to prevent misreporting. In your view, what is the 'last mile' failure point in these automated escrow setups that could still lead to a 15-day settlement breach?

Again, the scenarios for such a failure can be many, involving any of the co-lenders. To my understanding, this amendment has cleared the ambiguity around how industry players were structuring co-lending to bypass other regulatory provisions.

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

My top priority would be the Regulatory and Governance framework. Why? because NBFCs are heavily regulated, and when the regulator imposes sanctions, valuations deep-dive. Hence, the robustness of their conduct of business is very critical.

The second would be the Management Team, in second place. Today, talent is scarce. Strategies fail not because they are bad. It is due to execution and a lack of ownership.