Reliance Capital had pledged the shares in its unit RGI as safety towards funds raised by group corporations by means of the problem of non-convertible debentures in FY19.
Trusteeship, custodian of the RGI shares, says it doesn’t have permission from the debenture holders to launch the pledged shares — representing a 37% stake within the insurance coverage unit — in line with the folks cited above.
Absolutely owned by Reliance Capital, a part of the Anil Ambani-led Reliance Group, RGI is worthwhile and could possibly be price Rs 6,000 crore, in line with analysts.
It’s described because the crown jewel of Reliance Capital’s out there property that lenders have recourse to underneath the insolvency course of. The opposite valued asset is Reliance Capital’s 51% stake in Reliance Nippon Life Insurance coverage. The Reliance Capital group of corporations had borrowed from Credit score Suisse and Asset Administration by promoting non-convertible debentures backed by the RGI inventory in FY19. IDBI Trusteeship and Reliance Capital’s administrator Nageswar Rao Y didn’t reply to ET’s queries.
The administrator is prone to search authorized recourse to get the encumbered shares again into the pool of property which can be a part of the Reliance Capital insolvency proceedings, mentioned the folks cited above.
“The insolvency regulation is evident that collectors need to forgo their particular person rights reminiscent of encumbrances created of their favour as soon as insolvency proceedings start,” mentioned a authorized skilled conscious of the matter on situation of anonymity. “These need to be a part of the bigger pool of property for the advantage of all of the collectors.”