The Reserve Bank of India (RBI) on Friday constituted a three-member advisory committee to help the administrator of Dewan Housing Finance Corp Ltd(DHFL) discharge his duties.
The advisory committee comprises Rajiv Lall, non-executive chairman, IDFC First Bank Ltd, NS Kannan, managing director and CEO, ICICI Prudential Life Insurance Co. Ltd, and NS Venkatesh, chief executive, Association of Mutual Funds in India.
“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,” the RBI said.
On 20 November, RBI superseded the board of DHFL and appointed an administrator in its place, in a step towards referring the debt-laden mortgage lender to a bankruptcy court. The regulator named R. Subramaniakumar, former managing director and chief executive of Indian Overseas Bank, as the administrator for DHFL.
RBI had said it intends to shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. It would also apply to the NCLT for appointing the administrator as the insolvency resolution professional.
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