A parliamentary board demanded that the administration test the IL&FS gathering’s biggest partner, the LIC, as well as agencies that gave high ratings to entities of the weak infrastructure group.
The parliamentary panel’s recommendation comes just days after the former governor of RBI, YV Reddy, questioned the risk assessment capabilities of LIC and State Bank of India, given that they were two of the largest shareholders of IL&FS.
The IL&FS group has been defaulting on loan and bond repayments since August last year.
A parliamentary board demanded that the administration test the IL&FS gathering’s biggest partner, the LIC, as well as agencies that gave high ratings to entities of the weak infrastructure group. In a report on the governance failures, the Parliamentary Standing Committee said that the indecision on the part of the IL&FS Board should be probed thoroughly.
The parliamentary panel’s recommendation comes just days after the former governor of RBI, YV Reddy, questioned the risk assessment capabilities of LIC and State Bank of India, given that they were two of the largest shareholders of IL&FS.
The IL&FS group has been defaulting on loan and bond repayments since August last year, sparking risk-aversion in the financial markets, particularly towards non-bank lenders.