RBI supersedes Board of Directors of SREI Infrastructure Finance Limited and SREI Equipment Finance Limited

In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL), owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations. Shri Rajneesh Sharma, Ex-Chief General Manager, Bank of Baroda has been appointed as the Administrator of the aforesaid companies under Section 45-IE (2) of the RBI Act. The Reserve Bank also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional.

Shares of SREI Infrastructure Finance limited was last trading in BSE at Rs. 8.66 as compared to the previous close of Rs. 8.48. The total number of shares traded during the day was 527852 in over 897 trades.

The stock hit an intraday high of Rs. 8.84 and intraday low of 8.11. The net turnover during the day was Rs. 4443446.

Source : Equity Bulls

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