Friday, July 15, 2016

New SDR norms

The RBI released new strategic debt restructuring norms. A few key takeaways:

  • Only projects that have commenced operations are eligible for this
  • Meant for large accounts where the aggregate exposure is more than Rs 500 crore
  • Promoter and management will have to be necessarily removed if any intentional wrongdoing on their part is established
  • Lenders will have to present resolution plan to an external committee and get it approved
  • These new norms will provide a breather to both banks and promoters

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