- HOME
- Indian Arc Models
Indian ARC Models
Indian Arc Models
ARCs in India have been set up as non-government vehicles, not government owned/supported, with elements of Models II & III detailed above. Government is facilitator, not participant in ARCs. ARCs act as resolution agencies, not rapid disposition agencies as in the South East Asian region. There is provision for multiple ARCs in the Indian model for value maximisation.
Opportunities for investment in distressed assets have increased for investors since the demand-supply dynamics have become favourable. Further, a robust view is being taken on the operational nature of underlying assets and accordingly the demand for underlying assets is increasing. With the Indian economy in a capacity-additive mode and legal and regulatory framework becoming increasingly hospitable to resolution of NPAs, combined with the increasing interest evinced by new investors, ARCs have become the ideal vehicles to channel investment in distressed debt.