As expected, SREI Infra Finance got locked at the 5% LC of the day at Rs.8.17 the moment it opened for trade with only sellers on the counter.

The market reacted to RBI superseding the Board of the company and its wholly owned subsidiary, Srei Equipment Finance on account of governance concerns and repeated defaults.

Post this, RBI will no initiate the process of resolutions of the NBFCs under the Insolvency and Bankruptcy Rules, 2019, and apply to the National Company Law Tribunal (NCLT)  for appointing the administrator as Insolvency Resolution Professional.

Last week, Srei’s proposal to grant the company a one-year moratorium from any legal or other action to recover dues of around Rs.35,000 crore was rejected by the bankers/creditors.