PTI Feb 28, 2015, 04.34PM IST

(Currently, NBFCs can only)

MUMBAI: Large non-banking financial companies (NBFCs) have hailed the Budget proposal to include them under the Sarfaesi Act, as it will expedite the loan recovery process and help contain bad debt in the system.

Finance Minister Arun Jaitley presenting his first full Budget today said, "It is proposed that NBFCs registered with the RBI and having asset size of Rs 500 crore and above will be considered for notifications as 'financial institution' in terms of the Sarfaesi Act, 2002."

He said the move will bring parity in regulation of NBFCs with other financial institutions in matters relating to recovery.

"Including large NBFCs under the Sarfaesi Act are structural changes that will improve the viability of these growing intermediaries," Ananda Bhoumik, senior director (banks and FIs) at India Ratings said.

The Sarfaesi Act will enable large NBFCs to fund SME and mid-corporate businesses with lower loss prospects, he added.

IDFC managing director and CEO Vikram Limaye said, "This move is positive as NBFCs also require to excercise security. It will help them to recover their loans."

Currently, NBFCs can only approach the civil courts to recover loans from the borrowers, which usually use to take longer time.

"Earlier, to recover loans it used to take 2-2.5 years as legal processes take long time. This move will accelerate the recovery process and will bring down the NPA recovery time to 6-8 months," Kavi Arora, CEO of Religare Finvest, the NBFC arm of Religare Group said.

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'Move to bring NBFCs in Sarfaesi Act for recovery beneficial'

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The secret to slimming down might be hidden inside spicy chili peppers.

Researchers at University of Wyoming believe the fiery capsaicin found in chili peppers can potentially ultimately override a diet that is high in fat.

According to Medical Daily, researchers at the Baskilab in Wyoming added 0.01 per cent of capsaicin to the high-fat diet of lab mice and found the weight of the mice plateaued in those that carried the protein TRPV1 or transient receptor potential vanilloid 1, despite the consumption of fatty foods.

Researchers believe that the capsaicin converts fat-storing white cells into fat-burning brown cells through a process of thermogenics, the same process that occurs during excercise.

Baskilab researchers intend to continue their research in hopes of developing a dietary supplement which will combat obesity, announcing "this will advance a novel dietary supplement-based approach to prevent and treat one of the life-threatening diseases, obesity and its associated complications -- in humans."

While Baskilab's study suggests a small dose of capsaicin can even override the calories and saturated fat in a big batch of spicy chicken wings, for example, we can't help but think it would be more effective mixed into a healthy bowl of hummus. And don't go tossing those seeds and ribs either according to the Chicago Tribune, 80 per cent of the capsaicin in a pepper comes from those fiery insides.

If that's not enough to get you chowing down on some chilis, capsaicin is also touted for its ability to reduce the risk of colorectal tumors, cool heartburn, and suppress the formation of ulcers.

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Chili Peppers Benefits Could Include Weight Loss