GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES
UNSTARRED QUESTION NO 393
TO BE ANSWERED ON 21.10.2008
Functioning of Assets Reconstruction Companies Question
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state:-
to reply to Unstarred Question 1176 given in the Rajya Sabha on the 11th March, 2008 and state.:
(a) the number of Asset Reconstruction Companies (ARCs) functioning at present, and by whom members of the boards of ARCs are appointed;
(b) the criteria for their appointments, salary and perks payable to them;
(c) the present number of board :members of ARCs .-`lad vacancies therein, if any, at present; and
(d) the number out of` them who are former and present bank employees and, how many are from private sector ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a) to (d): Reserve Bank of India (RBI) has reported that till date eleven Securitization/Reconstruction Companies (SC/RCs) are registered with them. RBI has no direct role in the appointment of members of Board of Directors of SC/RCs. However, these companies are required to report to the RBI the names of directors at the time of seeking Certificate of Registration and subsequent changes, if any. RBI carries out due diligence of such individuals. The Directors of Asset Reconstruction Companies (ARCs) need to have adequate professional experience in matters related to finance, securitization and reconstruction. The bank has no information about salary and perks payable to the Board Members.
As per the information available with RBI there are total 87 members of the Board of Directors in the eleven SC/RCs. Out of 87 members 30 members have been associated with various banks, of which 6 members are associated with. Private Sector Banks. Of the 30 Directors who are/were associated with banks, 26 Directors are retired personnel, whereas 4 Directors are sponsor director still working with the bank.