InvestorQ : What did the government do to take control of the Infrastructure Leasing and Financial Services (IL&FS) crisis?
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What did the government do to take control of the Infrastructure Leasing and Financial Services (IL&FS) crisis?

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4 years ago
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After the IL&FS crisis hit the equity market with stocks of IL&FS as well as most non-banking finance companies and companies with large piles of debt plummeting significantly, the government took the situation in its own hands.

The government moved the National Company Law Tribunal (NCLT) to supersede IL&FS’ board and change its management. It did so after getting an approval from the Insolvency & Bankruptcy Court.

The new board will be headed by Kotak Mahindra Bank’s CEO and Managing Director Uday Kotak along with five other members - ICICI Bank Chairman Girish Chandra Chaturvedi, former head of the Securities and Exchange Board of India GN Bajpai, former IAS officer and Tech Mahindra chief Vineet Nayyar and former IAS officers Malini Shankar and Nanda Kishore.

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