New Delhi, May 18 -- Asset Reconstruction Companies (ARCs) continue to face major operational and regulatory challenges, including limited capital availability, prolonged legal delays, borrower resistance and valuation mismatches with banks in resolving stressed assets, Secretary, Department of Financial Services (DFS), Ministry of Finance, M Nagaraju said today.

"I am also aware ARCs face multiple hurdles in acquiring and resolving NPAs. Limited capital often restricts their ability to buy large volumes of distressed assets, especially when banks demand higher prices," he said while addressing a formal launch of ASREC India Limited logo in the national capital.

He further added that the regulatory overlaps between the Securitisation an...