The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act

An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and to provide for a Central database of security interests created on property rights, and for matters connected therewith or incidental thereto.

2002

List of Chapters & Sections

PRELIMINARY REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIALASSETS OF BANKS AND FINANCIALINSTITUTIONS ENFORCEMENT OF SECURITY INTEREST CENTRAL REGISTRY REGISTRATION BY SECURED CREDITORS AND OTHER CREDITORS OFFENCES AND PENALTIES MISCELLANEOUS

REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIALASSETS OF BANKS AND FINANCIALINSTITUTIONS

Registration of asset reconstruction companies

Cancellation of certificate of registration

Acquisition of rights or interest in financial assets

Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases

Notice to obligor and discharge of obligation of such obligor

Issue of security by raising of receipts or funds by asset reconstruction company

Exemption from registration of security receipt

Measures for assets reconstruction

Other functions of asset reconstruction company

Resolution of disputes

Power of Reserve Bank to determine policy and issue directions

Power of Reserve Bank to call for statements and information

Power of Reserve Bank to carry out audit and inspection

ENFORCEMENT OF SECURITY INTEREST

Enforcement of security interest

Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset

Manner and effect of take over of management

No compensation to directors for loss of office

Application against measures to recover secured debts

Making of application to Court of District Judge in certain cases

Appeal to Appellate Tribunal

Validation of fees levied

Appeal to High Court in certain cases

Right to lodge a caveat

Right of borrower to receive compensation and costs in certain cases

CENTRAL REGISTRY

Central Registry

Integration of registration systems with Central Registry

Delegation of powers

Central Registrar

Register of securitisation, reconstruction and security interest transactions

Filing of transactions of securitisation, reconstruction and creation of security interest

Modification of security interest registered under this Act

Asset reconstruction companyor secured creditors to report satisfaction of security interest

Right to inspect particulars of securitisation, reconstruction and security interest transactions

Rectification by Central Government in matters of registration, modification and satisfaction, etc

REGISTRATION BY SECURED CREDITORS AND OTHER CREDITORS

Registration by secured creditors and other creditors

Effect of the registration of transactions, etc

Right of enforcement of securities

Priority to secured creditors

OFFENCES AND PENALTIES

Cognizance of offence

Power of adjudicating authority to impose penalty

Appeal against penalties

Appellate Authority

Recovery of penalties

MISCELLANEOUS

Provisions of this Act not to apply in certain cases

Power to exempt a class or classes of banks or financial institutions

Protection of action taken in good faith

Offences by companies

Civil court not to have jurisdiction

The provisions of this Act to override other laws

Application of other laws not barred

Power of Central Government to make rules

Certain provisions of this Act to apply after Central Registry is set up or cause to be set up

Power to remove difficulties

Amendments to certain enactments

Repeal and saving