SC to choose between Sebi, RBI circulars for stressed assets' resolution

The issue gains importance as Sebi wants its circular on ISIN-level voting---issued in October 2020-to be applied to cases such as Reliance Capital and SREI

The Supreme Court (SC) will soon decide on the conflict over applicability of two circulars for resolution of stressed assets—one issued by banking sector regulator RBI and the other by securities regulator Sebi.

Under the RBI circular, any decision agreed by lenders representing 75 per cent by value of total outstanding credit facilities (fund based as well non-fund based) and 60 per cent of lenders by number shall be binding upon all the lenders. Meanwhile, a Sebi circular mandates that casting of votes by debenture holders take place at the ISIN-level.

An International Securities Identification Number (ISIN) is a 12 -digit alphanumeric