V Ramachandra appointed as member of Advisory Committee of SIFL, SEFL: The Reserve Bank named V Ramachandra, a former chief general officer of Canara Bank, to the advisory committees of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited on Tuesday (SEFL).
February 2023 Current Affairs Quiz
V Ramachandra appointed by RBI as member of of SIFL, SEFL: Key Points
- After replacing the boards of SIFL and SEFL in October 2021, the RBI established a three-member advisory panel to assist the administrator of the two troubled businesses.
- During the corporate insolvency resolution process, the Advisory Committee shall provide advice to the Administrator regarding the management of SIFL and SEFL.
- The other two members of the committee are T. Srinivasaraghavan, a former managing director at Sundaram Finance Limited, and Venkat Nageshwar Chalasani, a former deputy managing director at the State Bank of India.
- The National Company Law Tribunal’s Kolkata Bench received applications from the RBI in October 2021 to begin the corporate insolvency resolution procedure against SIFL and SEFL (NCLT).
About Advisory Committee of SIFL, SEFL
The three-member committee established pursuant to the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019, “will remain as the advisory body” following the NCLT’s admission of the petitions.
About SREI Group
In addition to almost Rs 10,000 crore in bonds and borrowings from other countries, Srei Group, which largely services the infrastructure and MSME sectors, owes over Rs 18,000 crore to about 15 lenders, including Axis Bank, UCO Bank, and State Bank of India.
Srei Equipment Finance stated in a regulatory filing earlier this month that its administrator had received a report from the transaction auditor on several fraudulent transactions in 2019–20 and 2020–21, which had a financial impact of more than Rs 3,025 crore on the Srei group.