Current Affairs · Asset Reconstruction Companies Guidelines

An Asset Reconstruction Company (ARC) is processing a new batch of settlement proposals and has convened its Independent Advisory Committee (IAC) to evaluate the cases. Based on the regulatory guidelines regarding the settlement of dues, which of the following statements correctly describe the mandated role and assessments of the IAC? 1. The IAC is explicitly required to assess the financial position and the projected cash flows of the borrower. 2. The IAC must evaluate the available recovery options along with their expected timeframes. 3. The IAC holds the ultimate authority to grant final approval for settlement proposals, rendering further deliberation by the Board of Directors unnecessary. 4. The IAC must enforce that all settlement amounts are strictly paid in a lump sum, prohibiting any non-lump sum payment arrangements. Select the correct option: