Strategic Debt Restructuring Scheme 2015:
- allows lenders to collectively hold 51% or more of the equity shares in the borrower company
- brings the acquired shares outside the SEBI Regulations
- mandates a lock-in of 1 year for acquired shares
Which of the above statements is/are correct?
Third statement is incorrect because there are some relaxations from SEBI regulations, but it does not bring the acquired shares outside SEBI regulations. The scheme allows creditor banks to convert their unpaid loans to equity of troubled firms.
This question is a part of GKToday's Integrated IAS General Studies Module