Resolution powers for non-banking financial companies enable structural measures to preserve financial stability and continuity. The Bank may, after inspecting a non-banking financial company's books and if required for public interest or financial stability, frame schemes to amalgamate, reconstruct, or split and vest businesses, and establish temporary Bridge Institutions to preserve critical activities. Such schemes may reduce pay of senior management, cancel some or all of their shares (including relatives' holdings), and provide for sale of assets; those subject to pay reduction or share cancellation shall not be 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 powers for non-banking financial companies enable structural measures to preserve financial stability and continuity.
The Bank may, after inspecting a non-banking financial company's books and if required for public interest or financial stability, frame schemes to amalgamate, reconstruct, or split and vest businesses, and establish temporary Bridge Institutions to preserve critical activities. Such schemes may reduce pay of senior management, cancel some or all of their shares (including relatives' holdings), and provide for sale of assets; those subject to pay reduction or share cancellation shall not be entitled to compensation.
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