The Reserve Bank of India eased its strategic debt restructuring rules to make it easier for banks to convert corporate bad loans into equity. The new rules reduce the amount of shares banks must sell within 18 months of debt-to-equity conversion from 51% to 26%. This change gives banks more flexibility and reduces their risk, with the goal of encouraging loan restructuring and turning defaulting companies around. Several large Indian corporations that had struggled with debt, such as Reliance Communications, have begun selling non-core assets to reduce their debt levels in response to these new rules.