New Delhi (20.04.2021): An RBI committee (six-member panel) will review the functioning of the Asset Reconstruction Companies (ARCs). Its report is required to be submitted within three months from the date of its first meeting. The committee's terms of reference include a review and examination of the existing legal and regulatory framework for ARCs and their business models and the measures required to make them more effective. Headed by ex-RBI Executive Director Sudarshan Sen, the committee is made up of PN Prasad (Ex-DMD, SBI), Vishakha Mulye (ED, ICICI Bank), Rohit Prasad (Professor, MDI, Gurgaon), Abizer Diwanji (E&Y), and R Anand (CA). RBI Guv Shaktikanta Das had indicated the formation of such a committee while announcing the FY22 monetary policy recently. On the basis of its findings, the committee will recommend a package of measures to enable ARCs in meeting the growing requirements of the financial sector. The committee is expected to examine the role of ARCs in the resolution of stressed assets especially under the Insolvency & Bankruptcy Code (IBC), 2016, and also suggest ways for improving liquidity in and trading of security receipts.
RBI: Six-member panel to review ARCs
By IndianMandarins - 2021-04-20 11:25:00
New Delhi (20.04.2021): An RBI committee (six-member panel) will review the functioning of the Asset Reconstruction Companies (ARCs). Its report is required to be submitted within three months from the date of its first meeting.
The committee's terms of reference include a review and examination of the existing legal and regulatory framework for ARCs and their business models and the measures required to make them more effective.
Headed by ex-RBI Executive Director Sudarshan Sen, the committee is made up of PN Prasad (Ex-DMD, SBI), Vishakha Mulye (ED, ICICI Bank), Rohit Prasad (Professor, MDI, Gurgaon), Abizer Diwanji (E&Y), and R Anand (CA).
RBI Guv Shaktikanta Das had indicated the formation of such a committee while announcing the FY22 monetary policy recently.
On the basis of its findings, the committee will recommend a package of measures to enable ARCs in meeting the growing requirements of the financial sector.
The committee is expected to examine the role of ARCs in the resolution of stressed assets especially under the Insolvency & Bankruptcy Code (IBC), 2016, and also suggest ways for improving liquidity in and trading of security receipts.
