In a major boost to asset reconstruction companies (ARCs), the Reserve Bank of India(RBI) has relaxed norms capping their shareholdings at 26% in the borrower firm under reconstruction, provided their net-owned funds are maintained at ₹100 crore. In a notification on Thursday, the RBI said: “ARCs with net-owned fund of ₹100 crore on an ongoing basis are exempted from the shareholding cap at 26% of post-converted equity of the borrower company.”
But the regulator did not specicfy the new sharing limit post-debt conversion.
