SP Tulsian, sptulsian.com shares his view on Muthoot and Manappuram .
Tulsian told CNBC-TV18, "As a regulator it is obligatory for RBI to look into these kinds of things because you see the masses involved the way they have been catering to the masses obviously anytime the way we have seen the hue and cry in case of the microfinance could have happened in this also. So, it is not the only in respect to the increasing the risk weightage and all that, but in my view there has to be so many regulatory moves, which are likely to come maybe in terms of the interest regulations, maybe in terms of the risk increase increasing the risk weightage and all that because the kind of mushrooming growth we have seen."
He further added, "All the NBFCs and the pure stock broking companies have seen moving into this business. So, it will be alarming and it will be imperative on part of RBI to look into all these things and they will definitely be having the tough time. In fact Muthoot and Manappuram both have been raising or leveraging their balance sheets by coming out with the bonds issue and all that because they were prohibited by the finances from the bank. So, this is all very much required that the Reserve Bank becomes proactive and initiates the regulatory guidelines or the moves before something wrong happens in this sector."
