Page 4 - Asset Reconstruction Companies
Asset reconstruction companies can now acquire financial assets of peers
The selling ARC should use the proceeds for the redemption of underlying security receipts.
 "Asset reconstruction companies can now acquire financial assets of peers")
After SC verdict, asset reconstruction firms' wait for returns get longer
This comes at a time when the government is toying with the idea to launch a new asset reconstruction company for the power sector, which is saddled with bad loans worth Rs 2.5 trillion
 "After SC verdict, asset reconstruction firms' wait for returns get longer")
Asset Reconstruction Companies to scale up operations in Indian banks
The primary reasons for spurt in stressed assets include aggressive lending practices, wilful default, loan frauds, corruption in some cases, and economic slowdown
 "Asset Reconstruction Companies to scale up operations in Indian banks")
RBI order may bump up ARCs' valuations
The Reserve Bank of India's dispensation to allow asset reconstruction companies (ARCs) to hold more than 26 per cent stake in distressed assets might bump up the valuations of the ARCs for foreign investors.The rule puts ARCs in a commanding position in deciding how an asset resolution should happen, something they could not do so far because of their limited shareholding. Technically, the latest rules give ARCs freedom to become owner of the stressed firm and drive the resolution process."We will now have better level of control and more say in how the company concerned should be operated," said Vinayak Bahuguna, managing director and chief executive officer of Asset Reconstruction Co of India (ARCIL). "Moreover, it gives ARCs the ability to maximise returns by increasing shareholding and selling the stake off in case a company turns around."The central bank, in a notification on its website on Thursday, did not specify an upper limit that an ARC can hold for debt converted into ...
 "RBI order may bump up ARCs' valuations")
RBI allows strong ARCs to hold more than 26% in sick units
ARC should be in compliance with net owned fund requirement of Rs 100 crore on an ongoing basis
 "RBI allows strong ARCs to hold more than 26% in sick units")
Why ARCs see good times in bad debts
Some ARCs have enough capital to explore the field on their own; others are willing to share the space with partners, who would contribute capital to buy stressed assets
 "Why ARCs see good times in bad debts")
