InvestorQ : What are the next steps now that RBI has superseded the board of directors of SREI Finance? Was this necessary?
Rutuja Nigam made post

What are the next steps now that RBI has superseded the board of directors of SREI Finance? Was this necessary?

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2 months ago
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Just a week back, the consortium of banks that had lent to SREI Finance had approached RBI and asked them to take over the affairs of SREI. Their logic was that the SREI group required a similar approach like the RBI had done for DHFL, considering it systemic risk implications. Accordingly, RBI has superseded the boards of SREI Infrastructure Finance and SREI Equipment Finance. A retired senior official of BOB has been appointed as administrator.

SREI will be the second NBFC, after Dewan Housing and Finance, to be referred to the NCLT for liquidation under instructions from the RBI. The SREI group has outstanding loans of Rs.28,000 crore to Rs.30,000 crore and the banks want to ensure that they are able to recover their funds with the lowest possible haircut. RBI found that SREI does pose a systemic risk to the financial system. NCLT will now invite interested buyers for SREI.

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