Bigger India
How India Avoided Its Lehman Brothers Moment
India's government has taken over a major private infrastructure financing and construction group after it began to default on its $13bn (£10bn) debt repayment - and the news sparked panic in the financial market.
Many are calling it India’s “too big to fail” moment, referring to big financial firms so large that their collapse could spark economic chaos.
On Monday, India took over the beleaguered IL&FS, an acronym for Infrastructure Leasing and Financial Services – a major non-banking financial institution, or a shadow bank. The firm’s six directors have been dismissed and the new board is now led by a top banker, Uday Kotak.