Merged Nbfcs Form Operational Committee

The four-member committee consists of Vivek Chaubhal (Apple Finance), A Chattriwala (Apple Credit), JL Mukherji (Srei International Finance) and R Ravi (Alpic Finance).

"The operational committee will go into all issues concerning the merger - not just those related to legal and tax issues," said AKT Janak, chief executive, Apple Finance. The committee is expected to submit its report within five-six weeks, he said.

Meanwhile, rating agency Crisil has put the fixed deposit and debenture issues of Alpic Finance and Srei International Finance on rating watch with developing implications following the announcement of the merger. While Alpic's fixed deposit (FD's) carry a rating of FB+ and its non convertible debentures carry a rating of BB+, the FD's of Srei International carry a rating of FA.

According to a statement issued, Crisil said that while in general, consolidation in the NBFC sector is positive, given the preliminary nature of the current moves, the impact on the ratings cannot be ascertained at this stage. The statement says that Crisil is in dialogue with the managements of both companies and will take final view on the rating after making a detailed assessment of the impact of the developments as and when they happen.