The Reserve Financial institution of India (RBI) has accepted 5 representatives of Hinduja Group as administrators on the board of Reliance Capital, which is present process insolvency proceedings.
Sources mentioned the administrators are: Amar Chintopanth, Shardchandra V. Zaregaonkar, Moses Newling Harding John, Bhumika Batra and Arun Tiwari.
The RBI’s approval got here together with a ‘no objection’ to Reliance Capital’s Rs 10,000-crore IIHL dissolution plan, and the proposed switch of management of the bankrupt firm to IIHL’s wholly-owned subsidiary, IIHL BFSI (India).
The Reserve Financial institution of India (RBI) has said that topic to the change of management and administration, the corporate will keep a strict distance with respect to any transaction with IndusInd Financial institution, owned by the Hinduja Group.
It additionally mentioned that after implementation of the decision plan, any change in shareholding will probably be topic to prior approval of the Reserve Financial institution of India.
It directed {that a} copy of the order handed by the Nationwide Firm Legislation Tribunal (NCLT) approving IIHL’s decision plan ought to be submitted to the financial institution.
NCLT’s approval of IIHL’s decision plan is pending because the Supreme Court docket is but to take a call on Torrent Funding’s plea in opposition to the second spherical of public sale held by Reliance Capital’s lenders.
A listening to on Torrent’s petition is scheduled to be held within the Supreme Court docket this week. Torrent was the best bidder within the first spherical.
First printed: November 20, 2023 | 12:49 pm he
(tags for translation) RBI
