Acquisition process of the Omkara ARC is governed by the acquisition policy, approved board, as required by RBI Directions for Securitisation Company / Reconstruction Company. Acquisition of Financial Assets such as may include sub-standard/ doubtful and loss assets. Standard assets likely to face distress prospectively may also be considered for acquisition. Omkara ARC follows systematic approach towards acquisition of financials assets from Banks / FIs which includes but not restricted to:
The Omkara’s resolution strategy revolve around the main idea of achieving the maximum the realisation from each distressed account it acquires. Our resolution methods are put up in reviving the financial assets in the best possible manner in the interest of all stakeholders.
Asset Reconstruction Companies (ARCs) are empowered to adopt as per Reserve Bank of India (RBI) guidelines, one of the following resolution strategies or a combination thereof, for reconstruction of financial assets:
Omkara’s resolution process are governed by our Resolution Policy of Financial Assets framed under extant guidelines. Our resolution strategy mainly depends on various factors such as operations of the borrowers, quality of the assets, experience of borrower’s top management, marketability of the financial assets. Our aim is to remain fully compliant with the extant RBI guidelines.
The assets are acquired from the Selling Bank / FI directly in the ARCs books (which are possible in 100% cash acquisition cases). Effectively, the arrangement becomes a direct Lending-Borrower relationship between the ARC and the Borrower. The ARC retains the option to subsequently transfer the assets to a Trust (at Acquisition Price less redemption), once eligible investors (QIBs) are available for subscribing to the SRs (in which the ARC will be required to hold at least 15% of the SRs of the Trust).