RBI appoints advisory committee to advise administrator of Srei Infrastructure Finance & Srei Equipment Finance

Reserve Bank of India on October 4 appointed an advisory committee to advise the administrator of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), the apex bank said in a release.

The members of the advisory committee are as follows,  R. Subramaniakumar, Former MD & CEO, Indian Overseas Bank, T T Srinivasaraghavan, Former Managing Director, Sundaram Finance Limited and Farokh N Subedar, Former Chief Operating Officer and Company Secretary, Tata Sons Limited, the central bank said.

The committee of advisor will advise the administrator in the operations of the companies whose board has been superseded during the corporate insolvency resolution process.

Earlier in the day, RBI had superseded the board of Srei Infra and Srei Equipment Finance Limited, owing to governance concerns and defaults by SREI Group Companies.

The central bank appointed Rajneesh Sharma, the former Chief General Manager at Bank of Baroda, as administrator. The central bank will soon initiate the process of resolution under the Insolvency and Bankruptcy Rules 2019 and apply to NCLT for appointing the administrator as Insolvency Resolution Professional.

Both the NBFCs owe lenders over Rs 30,000 crore and lenders were seeking a resolution akin to the DHFL resolution. Under DHFL resolution, Piramal Group had acquired it for Rs 38,000 crore.