RBI constitutes six-member panel headed by former ED to review ARCs

The Reserve Bank of India has formed a six-member panel headed by Sudarshan Sen, former Executive Director, to carry out comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem.

The panel will recommend suitable measures for enabling such entities to meet the growing requirements of the financial sector.

RBI in a statement said besides Sen other members of panel are Vishakha Mulye, Executive Director, ICICI Bank; P N Prasad, former Dy. Managing Director, SBI; Rohit Prasad, Professor of Economics, MDI, Gurgaon; Abizer Diwanji, Partner, Ernst & Young; and R Anand, Chartered Accountant.

The Committee will submit its report within three months from the date of its first meeting. RBI governor Shaktikanta Das had articulated intent to form the panel while announcing monetary policy for 2021-22.

The terms of reference for panel include Review of existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs. It will review business models of ARCs.

It would study role of ARCs in resolution of stressed assets including under Insolvency & Bankruptcy Code (IBC), 2016 and also suggest ways for improving liquidity in and trading of security receipts.