RBI superseded the board of directors of SIFL and SEFL; appoints Rajneesh Sharma as administrator
- The Reserve Bank of India has superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) under Section 45-IE (1) of the Reserve Bank of India Act, 1934. These both are NBFCs.
- Reason for superseding: This decision has been taken by RBI owing to governance concerns and defaults by these two NBFCs in meeting their various payment obligations.
- New Administrator: RBI has appointed Shri Rajneesh Sharma as the Administrator of SIFL and SEFL under Section 45-IE (2) of the RBI Act. He is Ex-Chief General Manager, Bank of Baroda. The administrator in such cases has the power to act as the Board of Directors. RBI would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional.
- Apart from this, RBI has formed a three-member Advisory Committee to assist the Administrator. The members of the Advisory Committee are as follows:
- Shri R. Subramaniakumar, Former MD & CEO, Indian Overseas Bank
- Shri T T Srinivasaraghavan, Former Managing Director, Sundaram Finance Limited
- Shri Farokh N Subedar, Former Chief Operating Officer and Company Secretary, Tata Sons Limited
- The administrator i.e. Shri Rajneesh Shamra, along with the advisory group, shall facilitate the reconstitution of the Board of Directors of the Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL).
- RBI will also initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019
Points to remember:
- Who has been appointed as the administrator of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL)?
- Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) are a type of?- NBFC
- RBI will initiate the process of resolution of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) under which Rules?
- superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) under which section of RBI Act?
- About NCLT
Source: RBI link 1 and RBI link 2