Edelweiss's Basal On India's Bad Loans Business

The video discusses the evolution of Asset Reconstruction Companies (ARCs) in India, initially promoted by the Reserve Bank of India (RBI) to handle recovery and resolution of financial assets. Over time, ARCs have shifted from fee-based activities to investment-based operations. Recent RBI guidelines have introduced changes, including reduced investment requirements with co-investors and increased capital requirements. Challenges such as unequal playing fields and restrictive regulations are highlighted, along with suggestions for improvement, including adopting IFRS accounting and expanding the investor base.

How does the net worth of all the ARCs compare to the assets they manage?

What is the significance of the 15% investment requirement for ARCs?

What suggestions were made to make the ARC market more vibrant?