The Reserve Bank on Wednesday, allowed securitisation and reconstruction companies (SC/RCs) to use part of funds raised from investors to restructure their financial assets, however, with certain riders. The RBI decision came in the wake of recommendations of a Key Advisory Group by government to revitalise distressed assets of SC/RCs. RBI said in a notification that it has decided to allow SC/ RCs to utilise a part of funds raised under a scheme from the Qualified Institutional Buyers (QIBs) for restructuring of financial assets acquired under the relative scheme.As per the relaxation on using the funds, SC and RCs with acquired assets in excess of Rs 500 crore can utilise a part of funds raised from QIBs for restructuring of financial assets. Further, the extent of funds that can be utilised for reconstruction purpose should not be more than 25 per cent of the funds raised.