RBI supersedes Srei Infra and Srei Equipment management boards

The Reserve Bank of India on Monday said it has superseded the board of directors of Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd, owing to governance concerns and defaults by the companies in meeting payment obligations.

Bank of Baroda's former chief general manager Rajneesh Sharma has been appointed as the administrator of the two companies.

''...the Reserve Bank has today superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), owing to governance concerns and defaults by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,'' an apex bank statement said.

It intends to initiate the process of resolution of the two NBFCs under the Insolvency and Bankruptcy Rules, 2019, the regulator said.

The RBI also said it would apply to the NCLT for appointing the administrator as the insolvency resolution professional.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)