Big news is coming out about the debt-ridden Anil Ambani’s company Reliance Capital. It is reported that Reliance Capital can be divided into four parts. The company’s administrator has made this proposal. In fact, the administrator of Reliance Capital has proposed to split the company into four main investment companies (CICs). This will completely change the structure of the company. Let us tell you that Reliance Capital is going through insolvency process. For this the trading of its shares has been closed for the last one month.
Bidding process is in final stage
The bidding process for the debt-ridden company is already in the final stages. Four companies Piramal, Zurich, Advent Private Equity and Aditya Birla Capital are on the list to buy Reliance Capital’s General Insurance and Life Insurance ventures.
Approval sought from RBI
According to reports, the administrator of Reliance Capital has written a letter to RBI seeking its opinion/approval on the proposal. As per the extant RBI rules, more than one CIC is not allowed in a company. Therefore, reconstruction of 4 CICs out of Reliance Capital CIC would require RBI’s green signal.
These are the proposed four CICs
The proposed four CICs are: Reliance General Insurance Company (RGIC), Reliance Nippon Life Insurance Company (RNLIC), all other businesses of RCAP, including Reliance Securities, ARC, Private Equity, Investment Real Estate, Reliance Commercial Finance and Reliance Home Finance etc. Huh.
What is CIC?
As per RBI rules, CIC is an NBFC engaged in the business of acquisition of shares and securities. In these, 90 per cent of the net assets in group companies are held in the form of investments in shares, bonds, debentures, debits or loans. Reliance Capital has around 20 financial services companies. Explain that the RBI had superseded the board of RCL on November 29, 2021, following payment defaults and other reasons.