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The shares of SREI Infrastructure Finance Limited (SIFL) were locked in the 5 per cent lower circuit during the morning trade on Tuesday after the Reserve Bank of India superseded the Board of Directors of SIFL and SREI Equipment Finance Limited.
The shares of SIFL opened at ₹8.17, down ₹0.43 or 5 per cent on the BSE as against the previous close of ₹8.60 and were locked in the 5 per cent lower circuit post opening.
It was trading at ₹8.20 on the NSE, down ₹0.40 or 4.65 per cent.
The Reserve Bank superseded the Board of Directors of SIFL and SEFL owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations, as per a regulatory filing.
Rajneesh Sharma, Ex-Chief General Manager, Bank of Baroda, has been appointed as the Administrator of the aforesaid companies.
“The Reserve Bank also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional,” it said.
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