RBI Identifies 12 Accounts for Immediate Resolution Under IBC

The Reserve Bank of India(RBI), in the latest development regarding resolution of non-performing assets has identified 12 bad accounts for immediate resolution under the Insolvency and Bankruptcy Code (IBC). The RBI, however, did not reveal the names of bad accounts. The Internal Advisory Committee (IAC) noted that under the recommended criterion, 12 accounts totalling about 25% of the current gross NPAs of the banking system would qualify for immediate reference under IBC.
 
Some of the bad NPAs have been listed out by the leading national research agencies, that may be referred for insolvency by the RBI. These names may include Alok Industries,Bhushan Steel, Electrosteel Steels, IVRCL, Era Infra Engineering, Sterling Biotech and Moser Baer India. Bhushan Steel is the top borrower in the list with a gross borrowing for FY16 at Rs 44,885 crore.
 
Insolvency and Bankruptcy Code is a single law that deals with insolvency and bankruptcy. The code establishes the Insolvency and Bankruptcy Board of India to oversee the insolvency proceedings in the country and regulate the entities registered under it. IBC outlines separate insolvency resolution processes for individuals, companies and partnership firms. 
 is engaged in the trading, manufacturing, import and export of diamond cutting and polishing, diamond studded jewellery and plain gold jewellery. Nakshatra World, asubsidiary of Gitanjali Gems, has received capital markets regulator, Securities and Exchange Board of India’s (SEBI) permission to float an Initial Public Offering (IPO).
 
In March,the company had filed Draft Red Herring Prospectus with SEBI and obtained observations necessary to launch the IPO on June 9, 2017.The issue consists of 1.8 crore equity shares of Nakshatra World.
 
The company's segments include diamond, jewellery and others. The jewellery business includes manufacturing and exporting plain gold and diamond studded jewellery.The diamond business includes manufacturing and exporting cut and polished diamonds.