Master Direction – Fit and Proper Criteria for Sponsors – Asset Reconstruction Companies (Reserve Bank) Directions, 2018
This Master Direction outlines the eligibility criteria and guidelines for sponsors of Asset Reconstruction Companies (ARCs).
The direction applies to all ARCs registered with the Reserve Bank of India.
The eligibility criteria for sponsors of ARCs include:
- Fit and proper status, determined by factors such as integrity, reputation, and competence.
- Furnishing of required information and supporting documents, including:
- Information by natural persons (Part A, B, and C)
- Information by legal persons (Part A, B, C, D, and E)
Sponsors are required to submit a declaration (Form I) and undertake continuous monitoring arrangements for due diligence.
Prior approval from the Reserve Bank is required for any changes to the sponsor’s information.
The direction includes schedules and forms for sponsors to submit the required information.
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