The Reserve Bank of India has named a six-member committee under the chairmanship of Sudarshan Sen, former RBI executive director, to undertake a comprehensive review of the working of asset reconstruction companies (ARCs) and recommend measures to enable them to meet the growing requirements.

Other members of the committee include ICICI executive director Vishakha Mulye, former SBI deputy managing director PN Prasad, EY partner Abizer Diwanji, MDI professor of economics Rohit Prasad and chartered accountant R Anand.

The committee will submit its report within three months from the date of its first meeting. “Department of Regulation, RBI, will provide the necessary secretarial support to the committee,” the central bank said in a statement.

The committee will review the existing legal and regulatory framework of ARCs and recommend measures to improve efficacy of ARCs.

It will also review role of ARCs in resolution of stressed assets including under Insolvency and Bankruptcy Code (IBC). Besides reviewing business models of the ARCs, the panel will give suggestions for improving liquidity in and trading of security receipts.

In its first monetary policy for the fiscal earlier this month, RBI had announced the setting up of a committee to undertake a comprehensive review of ARC regulations.