RBI appoints 3-member advisory panel to assist Reliance Capital administrator

The members of the committee are Sanjeev Nautiyal, former Deputy Managing Director of State Bank of India; Srinivasan Varadarajan, Ex-DMD, Axis Bank; and Praveen P Kadle, former MD & CEO, Tata Capital, RBI said in a notification.

“It may also be mentioned that the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 to appoint a Committee of Advisors to advise the Administrator for the concerned financial sector regulator. makes provision for. financial service provider during the corporate insolvency resolution process,” it said.

The RBI on Monday said it would refer RCap to bankruptcy courts after taking control of the company citing governance concerns and payment defaults. The central bank appointed Nageswara Rao Y, former executive director of Bank of Maharashtra, as the administrator of the company.

Reliance Capital is the third shadow lender to be attached by the RBI, after Dewan Housing Finance Corp Ltd and Shrey Infrastructure Finance Ltd.

On October 4, bondholders of Reliance Capital urged the RBI to consider referring the company for insolvency resolution, citing challenges faced in the asset monetization process and non-cooperation from the company. The trustee for the bondholders, Vistara ITCL, which accounts for 96 per cent of Reliance Capital’s debt, holds several company assets, including its insurance ventures, asset reconstruction firms and securities.