The Reserve Financial institution of India (RBI) has retained the three-member advisory committee to help the newly appointed administrator of Reliance Capital Ltd.
This comes only a day after Nationwide Firm Regulation Tribunal (NCLT) admitted the plea of central financial institution for initiating company insolvency decision of the crisis-ridden NBFC.
Final month, the RBI had outmoded Reliance Capital’s board, citing the corporate’s incapability to pay to its collectors and severe governance points.
Upon admission of the petition, the RBI stated it has determined that “the three-member Committee shall proceed because the Advisory Committee” underneath the Insolvency and Chapter (Insolvency and Liquidation Proceedings of Monetary Service Suppliers and Utility to Adjudicating Authority) Guidelines, 2019.
The Advisory Committee will advise administrator Nageswara Rao Y within the operations of Reliance Capital Ltd through the company insolvency decision course of.
The members of the advisory panel are — Sanjeev Nautiyal (ex-DMD, State Financial institution of India), Srinivasan Varadarajan (ex-DMD, Axis Financial institution), and Praveen P Kadle (ex-MD and CEO, Tata Capital Restricted).
Reliance Capital owes its collectors over ₹19,805 crore, majority of the quantity by means of bonds underneath the trustee Vistra ITCL India.
The corporate is the third NBFC to go for decision underneath the Insolvency and Chapter Code (IBC) after Dewan Housing Finance (DHFL) and Kolkata-based Srei Group.
Supply: Live Mint