RBI also said that ARCs should maintain net owned fund (NOF) of Rs100 crore on an ongoing basis. Photo: MintMumbai: The Reserve Bank of India (RBI) has allowed asset reconstruction companies (ARCs) to hold more than 26% post conversion of debt into equity in companies undergoing restructuring. RBI also said that ARCs should maintain net owned fund (NOF) of Rs100 crore on an ongoing basis. “The ARC shall frame policy on debt to equity conversion with the approval of its Board of Directors and may delegate powers to a Committee comprising a majority of independent directors for taking decisions on proposals of debt to equity conversion,” said the notification. They can now go up to 51% post conversion of debt into equity,” said Siby Antony, chairman, Edelweiss ARC.

Source: Mint November 23, 2017 16:18 UTC