Out of the 66 non-banking companies, 22 were based in West Bengal and 18 in Delhi, according to the central bank. Non-banking financial companies have been under the lens ever since a series of defaults at infrastructure major ILFS or Infrastructure Financing and Leasing Services triggered a rout in the domestic capital markets and fueled concerns about risk in the shadow banking sector.That prompted the government to step in and take control of the company.

In October-end, the new board of ILFS - constituted by the government - submitted a plan to revive the debt-laden firm to a company law tribunal, paving the way to a potential resolution of the group's future.Market regulator Sebi earlier this month tightened disclosure and review norms for credit rating agencies.

The regulator also said CRAs should disclose parameters such as liquid investments or cash balances, access to any unutilised credit lines and adequacy of cash flows in a specific section on liquidity.Meanwhile, the Reserve Bank of India has allowed banks to act as partial guarantors for some of non-banking financial companies' existing debt which should make it easier to refinance.

The move is seen easing a massive credit crunch affecting the sector.The central bank has cancelled registration certificates of more than 750 non-banking financial companies so far this month.TheIndianSubcontinent Beeps - your daily newsletter