The Reserve Bank of India (RBI) constituted a committee to evaluate the role of asset reconstruction companies (ARCs) in stressed debt resolution and review their business model.
About the committee:
- It is a six-member committee that will be headed by Sudarshan Sen, former executive director, Reserve Bank of India (RBI).
- To review the existing legal and regulatory framework and recommend measures to improve the efficacy of ARCs.
- It will also review their role in stressed asset resolution under the Insolvency and Bankruptcy Code (IBC), and suggest means to improve liquidity and trading of security receipts.
- It has also been asked to review the business models of ARCs.
- The committee will submit its report within three months from the date of its first meeting.