Mumbai: The Securities and Exchange Board of India (Sebi) has allowed Religare Finvest to take all measures it deems fit for the revival of the company, including selling assets to ARCs, modifying its earlier order, and allowed restructuring of its debt and raising of capital.
Apart from the above purposes, it withheld its March order that Religare Finvest will not dispose off assets or divert any funds without prior permission of Sebi for meeting its expenses for day to day operations, subject to strict adherence to the Reserve Bank of Indias corrective action plan (CAP).
Religare Finvest had sought relaxation from Sebi while the investigation was ongoing, so as to allow it to execute revival plan for the betterment of the company by taking required steps including the restructuring of its loans, securitization assignment of its assets to ARCs etc. to reduce its standing liability.
In this regard, a personal hearing was granted to RFL on June 19 and June 26.
Sebi pointed that as per the companys submissions, its provisional balance sheet shows that it has an outstanding debt of Rs 5,852 crore and a standard loan book of Rs 3,229 crore, as on March 31.
Religare Finvest had also submitted that its current cash flows are insufficient to meet the immediate one year debt obligations.
It has further submitted that the banks have the first charge over all the assets of RFL and there is every possibility of the banks taking coercive steps to sell the assets to recover their dues.
In March, Sebi had also directed Religare Enterprises and ReRead More – Source