Business Standard

Asset reconstruction companies can now acquire financial assets of peers

The selling ARC should use the proceeds for the redemption of underlying security receipts.

Independent directors may take decisions if Govt-RBI standoff continues

Subrata PandaAbhijit Lele Mumbai
The Reserve Bank of India (RBI) has allowed asset reconstruction companies (ARCs) to acquire financial assets from other ARCs in a bid to accelerate timely resolution of stressed assets.

Earlier, ARCs could acquire financial assets from other ARCs only when they had some exposure to the asset that was being bought. Thus, the acquisition was “limited to aggregating and be in a better position to resolve stressed assets”, said a senior executive with a foreign-owned ARC said.

Those with access to bigger amounts (funds) and endowed with skills to tackle complex assets will be in a position to buy out

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First Published: Jun 29 2019 | 2:28 AM IST

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