The Reserve Bank of India (RBI) has superseded the board of Dewan Housing Finance Corporation (DHFL) last week and appointed an administrator and three-member advisory committee in a bid to supervise its operations during the process of resolution under the Insolvency and Bankruptcy Code (IBC).
Further, the markets regulator made it mandatory for listed firms to curb defaults in a bid to improve transparency regarding their financial health to investors.
The financial market regulator’s order on default disclosure by listed organisations is likely to keep a check on how banks’ deal with bad loans and overcome the ever-greening of loans with such entities.
RBI named a three-member advisory committee to help the administrator in the resolution process of DHFL.
The Reserve Bank of India, on November 20, superseded DHFL’s board of directors and appointed former banker R Subramania kumar as the Administrator.
The move was initiated on account of “governance concerns and defaults by DHFL in adhering various payment obligations,” the RBI said.