{"id":5847,"date":"2021-11-29T19:59:40","date_gmt":"2021-11-29T14:29:40","guid":{"rendered":"https:\/\/tradebrains.in\/features\/biz-rbi-2ndld-rel-cap\/"},"modified":"2021-11-29T19:59:40","modified_gmt":"2021-11-29T14:29:40","slug":"biz-rbi-2ndld-rel-cap","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/features\/biz-rbi-2ndld-rel-cap\/","title":{"rendered":"RBI supersedes RCap Board; to shortly initiate insolvency proceedings"},"content":{"rendered":"<div class=\"trade-content_2\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-2140873195\"><p><a href=\"https:\/\/tradebrains.in\/get\/telegram\/\"><img decoding=\"async\" class=\"alignnone wp-image-101992\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2023\/01\/telegram-channel-300x119.png\" alt=\"\" width=\"148\" height=\"59\" \/><\/a> <a href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN3Epgswxc--Aw?hl=en-IN&amp;gl=IN&amp;ceid=IN%3Aen\"><img decoding=\"async\" class=\"alignnone wp-image-123430\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png\" alt=\"follow-on-google-news\" width=\"222\" height=\"61\" srcset=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png 300w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-150x41.png 150w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news.png 468w\" sizes=\"(max-width: 222px) 100vw, 222px\" \/><\/a><\/p>\n<\/div><p>Mumbai, Nov 29 (PTI) The Reserve Bank on Monday superseded the board of Anil Ambani promoted Reliance Capital Ltd (RCL) and will shortly initiate bankruptcy proceedings against the debt-ridden NBFC in view of payment defaults and serious governance issues.<\/p><div class=\"trade-content_7\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-2803025032\"><!-- Composite Start --> \r\n <div id=\"M923760ScriptRootC1549812\"> \r\n <\/div> \r\n <script src=\"https:\/\/jsc.mgid.com\/t\/r\/tradebrains.in.1549812.js\" async> \r\n <\/script> \r\n <!-- Composite End --><\/div>\n<p>Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) has been appointed as the administrator of the company, the RBI said in a statement.<\/p>\n<p>Meanwhile, the company in a statement welcomed the RBI&#8217;s move to resolve its debt under the Insolvency and Bankruptcy Code.<\/p>\n<p>&#8220;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,&#8221; it said.<\/p><div class=\"trade-content_5\" id=\"trade-2813821938\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_2_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"7925020301\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div>\n<p>This is the third large NBFC against which the central bank will initiate bankruptcy proceedings under the Insolvency and Bankruptcy Code recently.<\/p>\n<p>The RBI has initiated similar proceedings against Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL). While the proceedings against DHFL has been completed, the Srei issue is still pending.<\/p>\n<p>&#8220;&#8230;the Reserve Bank has today (Monday) 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,&#8221; the central bank said.<\/p>\n<p>It further said 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.<\/p>\n<p>&#8220;Reserve Bank will also apply to the NCLT, Mumbai for appointing the Administrator as the Insolvency Resolution Professional,&#8221; it said.<\/p>\n<p>In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company&#8217;s consolidated debt was Rs 40,000 crore.<\/p><div class=\"trade-content-10\" id=\"trade-51790602\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_3_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"2969612066\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div>\n<p>The company reported a consolidated loss of Rs 1,156 crore for the second quarter this fiscal against Rs 6,001 crore income. During 2020-21, the company had posted a loss of Rs 9,287 crore on a total income of Rs 19,308 crore.<\/p>\n<p>Reliance Capital in its statement said the &#8220;complexity of litigation&#8221; initiated by certain secured and unsecured lenders, resulting in the pendency of over 10 cases in various fora &#8212; including the Supreme Court, Mumbai High Court, Delhi High Court and DRT &#8212; has effectively stalled the resolution of the company\u2019s debt, despite its best efforts for the past over two years.<\/p>\n<p>&#8220;The Company owns profitable and valuable operating businesses, through its 100 per cent shareholding in RGIC and 51 per cent shareholding in RNLIC (a JV with 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,&#8221; it said.<\/p>\n<p>Reliance Capital further said it has &#8220;no outstanding loans from banks&#8221; and approx 95 per cent of its debt is in the form of debentures.<\/p>\n<p>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, it added. PTI NKD CS  NKD BAL BAL<\/p>\n<div class=\"trade-after-content\" id=\"trade-2790473414\"><div id=\"taboola-below-article-thumbnails\"><\/div>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({\r\n    mode: 'alternating-thumbnails-a',\r\n    container: 'taboola-below-article-thumbnails',\r\n    placement: 'Below Article Thumbnails',\r\n    target_type: 'mix'\r\n  });\r\n<\/script>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({flush: true});\r\n<\/script><\/div>","protected":false},"excerpt":{"rendered":"<p>Mumbai, Nov 29 (PTI) The Reserve Bank on Monday superseded the board of Anil Ambani promoted Reliance Capital Ltd (RCL) and will shortly initiate bankruptcy proceedings against the debt-ridden NBFC in view of payment defaults and serious governance issues. Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) has been appointed as the administrator of the [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1696,31],"tags":[],"class_list":["post-5847","post","type-post","status-publish","format-standard","hentry","category-corporate-action","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.5 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI supersedes RCap Board; to shortly initiate insolvency proceedings - Trade Brains Features<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradebrains.in\/features\/biz-rbi-2ndld-rel-cap\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RBI supersedes RCap Board; to shortly initiate insolvency proceedings\" \/>\n<meta property=\"og:description\" content=\"Mumbai, Nov 29 (PTI) The Reserve Bank on Monday superseded the board of Anil Ambani promoted Reliance Capital Ltd (RCL) and will shortly initiate bankruptcy proceedings against the debt-ridden NBFC in view of payment defaults and serious governance issues. 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