RBI Prescribes a Format for Furnishing Information w.r.t Appointment/re-Appointment of Director, MD or CEO in ARCs

Circular No. RBI/2023-24/127 DOR.GOV.REC.79/18.10.006/2023-24; Dated: 27.02.2024

As per section 3(6) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and the guidelines attached to the circular dated October 11, 2022, Asset Reconstruction Companies (ARCs) are required to obtain prior approval of the RBI for the appointment or re-appointment of any director, MD or CEO.

To ensure uniformity in the information submitted by ARCs for obtaining approvals, RBI has now prescribed a format for furnishing the requisite information about the candidate along with an indicative list of documents to be submitted with the application.

The format for submission of requisite information about the director, MD or CEO has been prescribed in Annexure I attached to the circular and the format for the list of documents to be submitted along with the application has been specified in Annexure II attached to the circular.

Further, ARCs are advised to submit complete applications along with duly signed annexures within 90 days before a vacancy arises or the proposed date of appointment or re-appointment. Also, the RBI may call for additional information/documents for processing the application, if required. These instructions shall be effective immediately.

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