Mumbai: The Reserve Bank of India today decided to retain the three-member advisory committee set up on Nov 22 to support the administrator of Dewan Housing Finance Corp Ltd, saying that the panel will continue to assist in the resolution process.
This comes after, the National Company Law Tribunal on Monday, admitted RBI's plea for initiation of corporate insolvency proceedings against Dewan Housing Finance Corp under the Insolvency and Bankruptcy Code, the first mortgage lender to be referred to the tribunal by the regulator.
The government has brought systemically important financial service providers under the purview of the Insolvency and Bankruptcy Code, in case they have assets of at least 5 bln rupees, and the case has been referred for resolution by the central bank
"The advisory committee shall advise the Administrator in the operations of the Dewan Housing Finance during the corporate insolvency resolution process," RBI said in a release on Wednesday.
On Nov 20, the central bank had superseded the board of directors of Dewan Housing Finance and appointed R. Subramaniakumar as the administrator.
Two days later, the regulator constituted a three-member advisory committee to assist administrator Subramaniakumar in discharge of his duties.
The committee comprises IDFC First Bank Non-Executive Chairman Rajiv Lall, ICICI Prudential Life Insurance Co MD and CEO N.S. Kannan, and Association of Mutual Funds in India Chief Executive N.S. Venkatesh.