RBI sets up committee to review working of ARCs

The Reserve Bank of India (RBI) has constituted a six-member panel to carry out a comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem. The panel will be headed by former Executive Director of RBI, Sudarshan Sen.

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Other members of the panel include:

• Vishakha Mulye – Executive Director, ICICI Bank;
• P N Prasad – former Dy. Managing Director, SBI;
• Rohit Prasad – Professor of Economics, MDI, Gurgaon;
• Abizer Diwanji – Partner, Ernst & Young;
• R Anand – Chartered Accountant

Terms of reference for the panel:

• Review existing legal and regulatory framework applicable to ARCs
• Recommend measures to improve the efficacy of ARCs.
• Review business models of ARCs.
• Study role of ARCs in the resolution of stressed assets including under Insolvency & Bankruptcy Code (IBC), 2016.
• Suggest ways for improving liquidity in and trading of security receipts.
• Recommend suitable measures for enabling ARCs to meet the growing requirements of the financial sector.

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