Asset reconstruction companies (ARCs) are urging the government to increase the percentage of sponsor shareholding in these companies, a move that could encourage strategic investors like private equity funds to play a more meaningful role.
They also want the government to permit them to lend or invest in shares of distressed companies — in addition to buying their non-performing assets (NPAs). The shareholding limit for a person deemed to be a sponsor in an ARC needs to be enhanced from 10 per cent to 26 per cent, according to ARCs. Under the current provisions of the ...
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First Published: Wed, December 13 2017. 00:51 IST
