NBFC woes will weigh on indices

Selling now guarantees losses, and the only way to handle this would be to average down

After the appointment of the new board, we're learning that the tentacles of Infrastructure Leasing & Financial Services (IL&FS) were spread even wider than most people guessed. The company had over 300 subsidiaries and the board is struggling to assess the new information. Various directors have to be replaced in the subsidiaries and a fresh audit has to be performed to get a clearer picture of the financial status. 

It will take a while to untangle everything. There's at least Rs 900 billion (bn) in debt outstanding and the sequence of defaults in the past few months indicates that this