RBI supersedes board of Srei Infra and Srei Equipment Finance

The central bank has appointed Rajneesh Sharma, ex-chief general manager at Bank of Baroda, as the administrator of the companies.

The Reserve Bank of India (RBI) on Monday (4 October 2021) said it has superseded the board of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), owing to governance concerns and defaults in payment obligations.

"In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the board of directors of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations," RBI said in a notification.

Rajneesh Sharma, ex- chief general manager, Bank of Baroda has been appointed as the administrator of the aforesaid companies under Section 45-IE (2) of the RBI Act.

RBI also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional.

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