Reserve Bank To Wind Up Crb Caps

The Reserve Bank of India (RBI) will go ahead with the winding up of CRB Capital Markets Ltd (CRB) as its chairman C R Bhansali did not show up at the apex bank yesterday. The Central Bureau of Investigation (CBI) is also closing in on Bhansali and was at RBI yesterday to question him in case he turned up.

RBI deputy governor S P Talwar told Business Standard that since Bhansali had not appeared before RBI, the apex bank would chalk out the plan of action it will now follow over the next three to four days.

Last Thursday, RBI had sent a letter to CRB asking the company to present before it, month-wise cash-flow statements and sale of assets within three working days failing which it would take drastic action. Now the RBI has decided to go ahead with the winding up.

 

The deadline given to CRB expired yesterday evening. However C R Bhansali, promoter of the group has not presented himself before the RBI. According to sources in the NBFC sector, the next logical step for the RBI will be to wind up CRBs operations.

As per RBI sources, CRB had never obtained registration from the RBI. CRB had applied for registration in September 1996. Following the application, the RBI decided to conduct an audit in October 1996. The audit in November 1996 revealed some irregularities in the companys operations and the RBI refused to give them their registration. As per the RBI (Amendment) Act, January 9, 1997, all NBFCs will have to compulsorily register with the RBI. Hence, it is unlikely that the company will ever be able to operate as an NBFC.