The Reserve Bank of India on Friday has appointed a three-member Advisory Committee to assist the Administrator of Dewan Housing Finance Corporation Ltd (DHFL) in discharge of duties. The three members of the Advisory Committee include, Dr Rajiv Lall, NS Kannan and NS Venkatesh. Lall serves as the non-executive chairman in IDFC First Bank ltd, while Kannan is managing director and chief executive officer in ICICI Prudential Life Insurance Co. ltd. Venkatesh is chief executive in the Association of Mutual Funds in India.
The RBI also said 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The RBI superseded the Board of Directors of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations.
The central bank also appointed R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, as the administrator of DHFL under Section 45-IE (2) of the Reserve Bank of India Act, 1934.
With the RBI's decision, DHFL is set to become the first non-banking financial company (NBFC) to be referred to the National Company Law Tribunal (NCLT) under new rules notified by the government.
First Published: IST