Updated: October 5, 2021 11:58:08 am
Shares of Srei Infrastructure Finance were locked in a 5 per cent lower circuit in the morning trade on Tuesday after the Reserve Bank of India (RBI) superseded the board of directors of the company.
The scrip was frozen at Rs 8.17 apiece on the BSE, down 5 per cent while on the National Stock Exchange (NSE), it was locked at Rs 8.20, down 4.65 per cent.
Over 6.15 lakh shares of Srei Infrastructure Finance were traded on the NSE while over 4.32 lakh shares exchanged hands of the BSE so far in the intraday trade, data from the respective stock exchange showed.
On Monday, RBI said that it has superseded the boards of Kolkata-based non-banking financial companies (NBFCs) Srei Infrastructure Finance and Srei Equipment Finance.
“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of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), owing to governance concerns and defaults by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,” the central bank said.
It further informed that Rajneesh Sharma, former chief general manager, Bank of Baroda has been appointed as the administrator of the two companies under Section 45-IE (2) of the RBI Act.
Additionally, the central bank constituted a three-member advisory committee to assist the administrator. This comprises of R Subramaniakumar, former MD & CEO of Indian Overseas Bank, T T Srinivasaraghavan, former MD of Sundaram Finance and Farokh N Subedar, former CEO and Company Secretary of Tata Sons.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.