RBI-SEBI initiative of debt to equity conversion not enough
The Dollar Business Bureau The co-ordinated efforts of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) to ease the process of conversion of debt into equity is unlikely to significantly benefit lenders as well as corporate borrowers for most of the current set of large corporate borrowers which, are already in distress or are close to distress, said a rating & research company report on March 25, 2015. However, the report welcomed the new joint initiative by the RBI and SEBI, as it would enhance the ability of the banks to convert debt into equity which, will provide another tool in the hand of lenders to fight non-performing assets (NPA), when in ...
