Promoters of the defaulting company / borrowers or guarantors are allowed to buy back their assets from the SCs / RCs subject to certain conditions that are helpful in the resolution process and minimization of cost. Guidelines on Uniform Accounting Standards for SCs / RCs has been issued for reckoning Acquisition cost, Revenue Recognition, Valuation of SRs, etc.
Secondly, on the assumption that most of these regulatory changes go ahead, one effect will presumably be to make the process of financial intermediation more costly. The intention, after all, is that lenders will operate with more capital against the risks they are taking.