A parliamentary panel has recommended doing away with the present restrictions on the composition of the board of directors of asset reconstruction companies (ARCs). And, suggested other changes in a government Bill to amend the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest ( Sarfaesi) Act, 2002 and other relevant legislation. A committee of both Houses, headed by Rajya Sabha member Bhupender Yadav of the ruling party, has recommended doing away with the existing clause in the Sarfaesi law which states that more than half of the members in an ARC board cannot be either nominees of any sponsor or associated in any manner with the sponsor or any of its subsidiaries. This was suggested following the proposed permission to the sponsor of an ARC to hold up to 100 per cent stake in it and to permit non- institutional investors to invest in securitisation receipts. Amendments to Sarfaesi were incorporated in the broader legislation— the E