RBI panel on ARCs seeks suggestions from stakeholders
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Mumbai The RBI committee on Asset Reconstruction Compan, kies, which will review the existing legal and regulatory framework applicable to ARCs, on Wednesday invited views and suggestions from stakeholders.
The suggestions could be given to the committee till May 31, 2021. On April 19, RBI had set up a committee to undertake a comprehensive review of the working of asset reconstruction companies (ARCs) in the financial sector ecosystem and recommend suitable measures for enabling them to meet the growing requirements.
The central bank had constituted the committee under the chairmanship of Sudarshan Sen, former Executive Director, Reserve Bank of India. As per the terms of reference of the committee, the panel will review the existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs. It will also review the role of ARCs in resolution of stressed assets including under Insolvency and Bankruptcy Code (IBC), and give suggestions for improving liquidity in and trading of security receipts. Besides, it has also been asked to review business models of the ARCs.
