Administrator seeks RBI nod to restructure Reliance Capital into four CICs

Will help bidders for its insurance business to avoid Irdai's 5-year lock-in

In a bid to get better offers from private equity (PE) firms, the Reliance Capital (RCap) administrator has proposed to restructure the diversified financial services holding company — now undergoing bankruptcy — into four separate core investment companies (CICs).

The administrator has written to the Reserve Bank of India (RBI) seeking its approval on Tuesday after the National Company Law Tribunal (NCLT) agreed to extend the completion of the bankruptcy process to January next year.

In line with the proposal, the four new CICs are Reliance General Insurance Company, Reliance Nippon Life Insurance Company, all the other businesses of RCap,