ARCs must be allowed to acquire bad assets of mutual funds, AIFs
- India undeniably requires a robust secondary market for distressed debt. Both ARCs and regulatory bodies share the responsibility to boost this market's efficiency.
Indian Asset Reconstruction Companies, or ARCs, have had existential issues to combat over the past few years. Hopes of a thriving distressed assets market remain unmet, and the recent significant bad debt clearances by Indian banks means that their challenge of boosting business is now even more severe.