New framework to bail out stressed financial companies likely today

Sources said the regulators would identify the companies that would come under the new mechanism and require a lifeline

Amid the crisis at Dewan Housing Finance (DHFL), financial sector regulators are planning a framework for resolving stressed financial conglomerates.  The new framework, which will be discussed by the regulators at a meeting in Mumbai on Friday, will help adopt a uniform approach on bailing out such companies. The process is hampered now because of a lack of coordination and inter-regulatory issues.
 
Sources in the know of the developments said an inter-regulatory panel of the Financial Stability and Development Council (FSDC), which includes chiefs and senior officials of the Reserve Bank of India, the Securities and Exchange Board of