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The Reserve Bank on Monday superseded the board of Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).

The two boards were superseded owing to governance concerns and defaults by these companies in meeting their various payment obligations.

The RBI appointed Bank of Baroda's former Chief General Manager Rajneesh Sharma as the administrator of these companies.

"The Reserve Bank also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019....

"... and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional," the central bank said in a statement.