New Delhi, Oct. 6 -- The Reserve Bank of India's (RBI) October policy measures are major relief to India's non-banking financial companies (NBFCs) according to a Morgan Stanley report.

The report interprets the policy changes as reflecting a supportive stance towards NBFCs and infrastructure financing sectors.

Morgan Stanley noted that the RBI has removed the proposed restriction on overlaps in businesses undertaken by a bank and its group entities in the final regulations on Forms of Business and Prudential Regulation for Investments. These regulations are expected to be released shortly.

"We think this is positive for bank promoted NBFCs in our coverage." the report stated.

In another measure, the RBI has proposed to reduce risk wei...