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The Reserve Bank of India (RBI) has constituted a three-member Advisory Committee to assist the Administrator of Reliance Capital.
The members of the Advisory Committee include Sanjeev Nautiyal, former Deputy Managing Director, State Bank of India, Srinivasan Varadarajan, former Deputy Managing Director, Axis Bank and Praveen P Kadle, former Managing Director and CEO, Tata Capital.
“...the Reserve Bank has constituted a three-member Advisory Committee to assist the Administrator in discharge of his duties,” the RBI said on Tuesday.
“It may also be mentioned that the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 provide for the concerned financial sector regulator appointing a Committee of Advisors to advise the Administrator in the operations of the financial service provider during the corporate insolvency resolution process,” it further said.
The RBI had on November 29 superseded the board of directors of Reliance Capital and appointed Nageswara Rao Y, ex-Executive Director, Bank of Maharashtra, as the Administrator of the company.
The action was taken by the central bank after numerous defaults by Reliance Capital in repayment of its debt obligations.
Shares of Reliance Capital were locked at the five per cent lower circuit and closed at ₹18.10 apiece on BSE.
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