RBI committee on ARCs invites stakeholders’ views & suggestions

New Delhi, Apr 29 (KNN) The Reserve Bank of India (RBI) has said the committee on Asset Reconstruction Companies (ARCs) has invited views and suggestions from market participants and other stakeholders.

According to a press statement, the suggestions can be forwarded to the committee till May 31, 2021.

On April 19, RBI had set up a committee to undertake a comprehensive review of the working of asset reconstruction companies (ARCs) in the financial sector ecosystem and recommend suitable measures for enabling them to meet the growing requirements.

The central bank had constituted the Committee under the chairmanship of Sudarshan Sen, former Executive Director, Reserve Bank of India.

The committee will review the existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs.

It will also review the role of ARCs in resolution of stressed assets including under Insolvency and Bankruptcy Code (IBC), and give suggestions for improving liquidity in and trading of security receipts.

Besides, it has also been asked to review business models of the ARCs.

The panel is scheduled to submit its report within three months from the date of its first meeting.