RBI set to conduct special audit SREI Infrastructure Finance and subsidiary

Reserve Bank of India

SREI Infrastructure Finance Ltd on Friday communicated to the exchanges that the Reserve Bank of India (RBI) will be conducting a regulatory special audit on the Non-Banking Financial Corporation (NBFC) and its subsidiary.

In its official communiqué the NBFC said “We’d like to inform you that a special audit of the Company and its subsidiary, Srei Equipment Finance Ltd. is being undertaken by an auditor appointed by the Reserve Bank of India in exercise of its powers under Section 45 MA(3) of the RBI Act, 1934.”

Under the said section, the banking regulator at any point of time, may give orders to conduct a special audit of the accounts of a NBFC, if it comes to the conclusion that an audit is needed in the public interest or in the interest of the non-banking financial company or in the interest of the depositors of such company.

Also Read: Bank of Baroda, Srei Equipment Finance join hands for infra equipment loans

The 35-year-old Kolkata based non-bank lender is facing challenges pertaining to new business operations and liquidity crunch.

Srei Infra holds 3.34% stakes in the Lakshmi Vilas Bank, which is put under a 30-day moratorium by the RBI.

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