India Debt Resolution Company Ltd (IDRCL)

Current Context: An asset management company (AMC) was set up by the Government of India.

• The name of the AMC is India Debt Resolution Company Ltd (IDRCL).
• The IDRLC was set up with a paid-up capital of Rs. 80.5 lakh on an authorized capital of Rs 50 crore.
• The IDRLC will work in coordination with National Asset Reconstruction Company Ltd (NARCL).
• It will work to eradicate bad loans.
• Some of the PSBs are shareholders of IDRCL and these are: Bank of Baroda (BoB), Punjab National Bank (PNB), Bank of India (BoI), Bank of Maharashtra, SBI, Union Bank of India, Canara Bank, Indian Bank, and IDBI Bank.
• The PSBs and public financial institutions will hold 49% of the maximum stake in the newly formed company.
• The rest of the stakes will be owned by private sector entities.
• The IDRCL is a company that will operate to manage the asset, bring market professionals and turnaround experts.
• It will function to perform debt management, operational management, resolution advisory, support, and consultancy services in the domains of debt and insolvency resolutions.
• The advisory services for debt resolution will be provided by the company.
• It will manage corporate debtor working affairs and will assist asset reconstruction companies (ARCs).

Question: 

Q.1 The GoI has set up India Debt Resolution Company Ltd (IDRCL). It will work in coordination with which entity?
a. National Asset Reconstruction Company Ltd
b. Reserve Bank of India
c. Association of Mutual Funds
d. Securities and Exchange Board of India