RBI directs audit of two Srei companies to check possible links with IL&FS
The scope of the audit is extensive — covering a three-and-half-year period beginning April 1, 2017, and including a scrutiny of all credit exposure of Rs 50 crore and above of Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
Synopsis
The audit, directed by the Reserve Bank of India (RBI), will track the end use of money lent by Srei firms against ‘letter of awareness’ issued by the IL&FS group.
Mumbai: The special audit of two key companies of Srei, a leading infra and equipment finance house, will examine their possible links with IL&FS group — India’s largest shadow bank whose collapse shrank the bond market and unsettled regulators in the summer of 2018.The audit, directed by the Reserve Bank of India (RBI), will track the end use of money lent by Srei firms against ‘letter of awareness’ issued by the IL&FS group. Letter of
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