INSUBCONTINENT EXCLUSIVE:
The Reserve Bank said that it will initiate bankruptcy proceedings against the companies.HighlightsRBI to initiate bankruptcy proceedings
against the NBFCs Rajneesh Sharma has been appointed as the Administrator Srei group owes around Rs 18,000 crore to around 15
lendersNew Delhi: The Reserve Bank of India (RBI) on Monday said that it has superseded the board of directors of non-banking financial
companies Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) due to governance concerns and defaults
The central bank added that it will initiate bankruptcy proceedings against the companies."The Reserve Bank has today superseded the Board
of Directors of SIFL and SEFL, owing to governance concerns and defaults by the aforesaid companies in meeting their various payment
obligations," the RBI stated in a notification.The central bank's notification also said that Rajneesh Sharma, former Chief General
three-member advisory committee to assist the Administrator in discharge of his duties.The members are R Subramaniakumar, former MD - CEO,
Indian Overseas Bank; T T Srinivasaraghavan, former Managing Director, Sundaram Finance Limited; and Farokh N Subedar, former Chief
Operating Officer and Company Secretary, Tata Sons Limited.Srei group owes around Rs 18,000 crore to around 15 lenders.Srei said its total
liabilities are around Rs 18,000 crore of bank loans, and another nearly Rs 10,000 crore of external commercial borrowings and bonds
Realisable assets, including arbitration awards, are higher.The NBFC has also been battling a human resource crisis since December last year
with nearly 230-250 people leaving the Srei group, as the pandemic-induced economic crisis created an asset-liability mismatch.Srei group
mainly serves the MSME and infrastructure sector.The shares of Srei Infra settled 2.12% higher at Rs 8.66 on the BSE index.
