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FSDC panel discusses insolvency resolution process

Press Trust of India  |  Mumbai 

Amidst mounting bad loans, the FSDC sub-committee headed by today reviewed the resolution process under the and Code (IBC), the Reserve Bank said.

Besides, the Financial Stability and Development Council-sub committee also reviewed major developments on the global and domestic fronts that impinge on the financial stability of the country, the RBI said in a statement.

The meeting comes a day after the raised the benchmark lending rate to a range of 1.75-2.0 per cent. The second increase of the year, and signalled two more hikes were coming in 2018 and four in 2019, a possible sign of concern about accelerating inflation.

"Further, the Sub-Committee reviewed the status of Corporate Resolution Process, functioning of (SLCCs) in various States/ Union Territories (UTs) and activities of its various Technical Groups," it said.

It is to be noted that IBC came into effect in 2016. Following this, 12 top stressed accounts with NPA over Rs 5,000 crore were identified by RBI for NCLT proceedings.

Banks, accordingly, referred Ltd, Bhushan Power & Steel Ltd, Essar Steel Ltd, Jaypee Infratech Ltd, Lanco Infratech Ltd, Monnet Ispat & Energy Ltd, Jyoti Structures Ltd, Electrosteel Steels Ltd, Amtek Ltd, Era Infra Engineering Ltd, and to NCLT. These accounts together have total outstanding loan of Rs 1.75 lakh crore.

RBI further said the sub-committee discussed issues related to framework for Systemically Important Financial Institutions (SIFI), Common Stewardship Code for financial sector, single entity undertaking multiple activities and status of Central KYC Registry (CKYCR).

The other issues like (IEPF), action taken against Shell companies, legal framework for cross border insolvency and issues regarding acceptance of deposits under Companies Act were discussed in the meeting.

The meeting was attended by Injeti Srinivas, Secretary, Ministry of Corporate Affairs, Ajay Tyagi, Chairman, Securities and Exchange Board of (SEBI), S. C. Khuntia, Chairman, of (IRDAI), M S Sahoo, Chairperson, Insolvency and Board of (IBBI).

Besides, Deputy Governors of the Reserve Bank - N S Vishwanathan, Viral V Acharya and B P Kanungo, C S Mohapatra, Secretary, and Deepak Mohanty, of the Reserve Bank also attended the meeting.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 14 2018. 21:05 IST
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