The Reserve Bank of India (RBI) on Wednesday said the committee on asset reconstruction companies (ARCs) has invited views and suggestions from market participants and other stakeholders. This comes after RBI highlighted that the existing ARC industry has registered a lacklustre performance so far. The central bank on April 7 had announced the setting up of a committee, under the chairmanship of Sudarshan Sen, former ED (RBI), to undertake a comprehensive review of the working of ARCs in the financial sector ecosystem.
Market participants are expecting more clarity on ARC regulations after the move from the regulator.
“We hope that situation like UV Asset Reconstruction (UVARC) matter does not occur again,” a senior representative from the industry said. Last year, the ARC association and lenders like State Bank of India (SBI) had sought clarifications from RBI on the involvement of these entities in resolution plans under the Insolvency and Bankruptcy Code (IBC).
News Source: fianncialexpress