{"id":27457,"date":"2018-10-23T14:13:29","date_gmt":"2018-10-23T08:43:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27457"},"modified":"2018-10-23T14:13:29","modified_gmt":"2018-10-23T08:43:29","slug":"sc-orders-status-quo-on-rbis-february-12-circular","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sc-orders-status-quo-on-rbis-february-12-circular\/","title":{"rendered":"SC orders status quo on RBI\u2019s February 12 circular"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/sc-orders-status-quo-on-rbis-february-12-circular\/article24928863.ece\">SC orders status quo on RBI\u2019s February 12 circular<\/a><\/p>\n<p><strong>\u00a0<\/strong><strong><u>News<\/u><\/strong>:<\/p>\n<ol>\n<li>Supreme Court halted insolvency proceedings against defaulter companies.<\/li>\n<\/ol>\n<p><strong><u>Important Facts:<\/u><\/strong><\/p>\n<ol start=\"2\">\n<li>SC has issued stay order on RBI circulation asking banks to consider loan as a Non Performing Assets (NPA) even if repayment of loan is delayed by single day.<\/li>\n<li>If the cases are pending before National Company Law Tribunal (NCLT) after RBI circulation earlier, status quo will be maintained.<\/li>\n<li>Several concerns have been raised against the Supreme Court order as it will not benefit the companies in a long run, such as:<\/li>\n<\/ol>\n<ul>\n<li>Delay in resolution of stressed assets.<\/li>\n<li>Impeding process established under Insolvency and Bankruptcy code (IBC)<\/li>\n<li>Undermine investor confidence in bankruptcy process.<\/li>\n<li>Court order will not be able to cater structural issues associated with power companies.<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><u>Structural Issues with Power Sector:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Absence of price reforms.<\/li>\n<li>Unsustainable finance of Public sector power distribution companies.<\/li>\n<li>Fuel supply to power sector.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>Banks are happy as the reprieve order will help them delay the recognition of bad loans.<\/li>\n<li>However, Banks will not be able to gain much from resolution process unless these structural issues are sorted out.<\/li>\n<li>To resolve the structural issues government intervention is required, not Supreme Court orders.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>SC orders status quo on RBI\u2019s February 12 circular \u00a0News: Supreme Court halted insolvency proceedings against defaulter companies. Important Facts: SC has issued stay order on RBI circulation asking banks to consider loan as a Non Performing Assets (NPA) even if repayment of loan is delayed by single day. If the cases are pending before&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sc-orders-status-quo-on-rbis-february-12-circular\/\">Continue reading <span class=\"screen-reader-text\">SC orders status quo on RBI\u2019s February 12 circular<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27457","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704811226},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27457"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27457\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}