A logo of the Reserve Bank of India (RBI) is seen at the door of its office in New Delhi, India on November 9, 2018. REUTERS / Altaf Hussain

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BENGALURU, Nov. 29 (Reuters) – India’s central bank on Monday announced it would file bankruptcy proceedings against Reliance Capital Ltd (RLCP.NS) and replaced the board of directors of the non-bank finance company over the issues governance.

The Reserve Bank of India (RBI) appointed Nageswar Rao Y, former executive director of Bank of Maharashtra Ltd (BMBK.NS), as director of Reliance Capital.

In June 2019, auditors raised several red flags regarding Reliance Capital’s fourth quarter results, including a lack of clarity in accounting methodology.

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Since then, the company has not made multiple debt securities payments.

The RBI’s ruling against Reliance Capital follows a similar action taken against Srei Infrastructure Finance Ltd (SREI.NS) and Srei Equipment Finance Ltd earlier this year. Read more

Reliance Capital did not immediately respond to a request for comment.

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Report by Anuron Kumar Mitra in Bangalore; Editing by Shounak Dasgupta

Our standards: Thomson Reuters Trust Principles.


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