New Delhi, Oct. 8 -- Proposed restrictions on insurance commissions could put pressure on the earnings of non-banking financial companies (NBFCs) from FY28, particularly lenders that depend heavily on income from selling insurance products, according to a report by Nuvama Institutional Equities.

In its October 2026 Banking and Finance sector report, Nuvama said the Insurance Regulatory and Development Authority of India's (IRDAI) proposed changes to insurance distribution rules could reduce fee income and profitability for several NBFCs.

"The consultation paper in its current form represents a clear regulatory overhang for NBFCs with meaningful insurance distribution income," the report said.

The IRDAI consultation paper proposes tight...