Resolution power for non-banking financial companies allows schemes including amalgamation, reconstruction, splitting and asset measures. Section 45MBA empowers the Bank, after inspecting an NBFC's books and where public interest or financial stability requires, to frame resolution schemes including amalgamation, reconstruction, splitting into separate units and creation of temporary 'Bridge Institutions' to preserve continuity. Schemes may reduce pay of senior management, cancel some or all of their shares (including relatives'), and provide for sale of assets; those whose pay is reduced or shares cancelled are not entitled to compensation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Resolution power for non-banking financial companies allows schemes including amalgamation, reconstruction, splitting and asset measures.
Section 45MBA empowers the Bank, after inspecting an NBFC's books and where public interest or financial stability requires, to frame resolution schemes including amalgamation, reconstruction, splitting into separate units and creation of temporary "Bridge Institutions" to preserve continuity. Schemes may reduce pay of senior management, cancel some or all of their shares (including relatives'), and provide for sale of assets; those whose pay is reduced or shares cancelled are not entitled to compensation.
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