OTHER GROUP COMPANIES
market

RBI supersedes board of Reliance Capital; stock hits 5% lower circuit

The Company will co-operate fully with the Administrator appointed by the RBI for the expeditious resolution of its debt in the best interests of all stakeholders.

November 30, 2021 12:11 IST | India Infoline News Service
Shares of Reliance Capital hit a 5% lower circuit at Rs18.10 on the BSE in the early morning trade. The RBI on Monday said it would refer Reliance Capital to bankruptcy courts after taking control of the troubled financial services company, citing governance concerns and payment defaults.

“In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively,” the RBI said in the notification.

The Reserve Bank will 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. Reserve Bank will also apply to the NCLT, Mumbai for appointing the Administrator as the Insolvency Resolution Professional, the central bank added.

The stock is currently trading at Rs18.10 down by Rs0.95 or 4.99% from its previous closing of Rs19.05 on the BSE. The scrip opened at Rs18.10 and has touched a high and low of Rs18.10 and Rs18.10 respectively.

The Company will co-operate fully with the Administrator appointed by the RBI for the expeditious resolution of its debt in the best interests of all stakeholders. The complexity of litigation initiated by certain secured and unsecured lenders, resulting in the pendency of over 10 cases in various fora, including the Hon’ble Supreme Court, Mumbai High Court, Delhi High Court and DRT, has effectively stalled the resolution of the Company’s debt, despite its best efforts for the past over 2 years, Reliance Capital said in the filing.

The Company looks forward to expeditious resolution of its debt and continuation as a well capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders, the company added.

The Company owns profitable and valuable operating businesses, through its 100% shareholding in RGIC and 51% shareholding in RNLIC (a JV with global leader, Nippon Life Co. of Japan), which represent the majority of the value of the Company being a Core Investment Company (CIC), besides other financial investments, it added.

OPEN A DEMAT ACCOUNT & Get FREE Benefits worth 10,000

OPEN A DEMAT ACCOUNT & Get
FREE Benefits worth 10,000

STOCK VIEW

PRESTIGE (NSE)

The average score for Prestige Estates Projects Limited stands at 4 against 6, three months back.

Prestige Estates Projects Limited is engaged in the business of real estate development. The Company’s principal products/services include Development and construction

FEATURED ARTICLE

BLOGS

Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity