The Reserve Bank of India has approved three entities to operate as asset reconstruction companies, a news report said. The companies include the US-based Encore Capital. The other two are Ahmedabad-based CFM, backed by a chartered accountant and the Vishakapatnam headquartered Maximus. Encore Capital had applied in partnership with International Finance Corporation while CFM is owned by Chartered Finances Management (CFM) Consultants, an accounting firm and the Maximum ARC, incorporated in 2015, operates as financial intermediation. There were 14 applicants for the approval including Sudhir Valia, brother-in-law of billionaire Dilip Sanghavi and also a promoter of Fortune Financial Services; J C Flower in partnership with broking firm Ambit Holdings; ICICI Bank in partnership with Apollo Global Management; India Infoline Finance; and individuals including businessman Vinod Kothari. Currently, there are 16 ARCs operating in the country, but only a few of them are active in the space.
