Previously, the maximum resolution period permitted for securitization companies (SCs) and reconstruction companies (RCs) for realization of stressed assets acquired by them was 8 years. The circular of May 7, 2015 notes that this may jeopardize restructuring efforts of the majority lenders in cases before the Board for Financial Reconstruction (BIFR)/Corporate Debt Restructuring (CDR)/Joint Lenders' Forum (JLF) as this regulatory constraint meant that SCs and RCs had to insist on an exit within 5 to 8 years. In view of this, SCs/RCs are now allowed to accept resolution periods co-terminus with the other secured lenders where the restructuring proposals are approved/to be approved by the BIFR/CDR/JLF. 

Circular