Sections Particulars
Preamble
An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidenta...
Chapter I Preliminary
1 Short title, extent and commencement
1. Short title, extent and commencement.- 1.     This Act may be called the Securitisation and Reconstruction of Financial Assets and Enforcement of Securit...
2 Definitions
2. Definitions.- 1.     In this Act, unless the context otherwise requires,-a.     Appellate Tribunal means a Debts Recovery Appellate Tribunal established u...
Chapter II Regulation of securitisation and reconstruction of financial assets of banks and financial institutions
3 Registration of securitisation companies or reconstruction companies
3. Registration of securitisation companies or reconstruction companies.-1.     No securitisation company or reconstruction company shall commence or carry o...
4 Cancellation of certificate of registration
4. Cancellation of certificate of registration.- 1.     The Reserve Bank may cancel a certificate of registration granted to a securitisation company or a r...
5 Acquisition of rights or interest in financial assets
5. Acquisition of rights or interest in financial assets.- 1.     Notwithstanding anything contained in any agreement or any other law for the time being in ...
6 Notice to obligor and discharge of obligation of such obligor
1.     The bank or financial institution may, if it considers appropriate, give a notice of acquisition of financial assets by any securitisation company or...
7 Issue of security by raising of receipts or funds by securitisation company or reconstruction company
7. Issue of security by raising of receipts or funds by securitisation company or reconstruction company.- 1.     Without prejudice to the provisions contai...
8 Exemption from registration of security receipt.-Notwithstanding anything contained in sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908)
8. Exemption from registration of security receipt.-Notwithstanding anything contained in sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1...
9 Measures for assets reconstruction
9. Measures for assets reconstruction.-Without prejudice to the provisions contained in any other law for the time being in force, a securitisation company o...
10 Other functions of securitisation company or reconstruction company
10. Other functions of securitisation company or reconstruction company.- 1.     Any securitisation company or reconstruction company registered under sectio...
11 Resolution of disputes
11. Resolution of disputes.- Where any dispute relating to securitisation or reconstruction or non-payment of any amount due including interest arises amongs...
12 Power of Reserve Bank to determine policy and issue directions
12. Power of Reserve Bank to determine policy and issue directions.- 1.     If the Reserve Bank is satisfied that in the public interest or to regulate fina...
Chapter III Enforcement of security interest
13 Enforcement of security interest
13. Enforcement of security interest.- 1.     Notwithstanding anything contained in section 69 or section 69A of the Transfer of Property Act, 1882 (4 of 18...
14 Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset
14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset.- 1.     Where the possession of a...
15 Manner and effect of takeover of management
15. Manner and effect of takeover of management.- 1.     When the management of business of a borrower is taken over by a secured creditor, the secured cred...
16 No compensation to directors for loss of office
16. No compensation to directors for loss of office.- 1.     Notwithstanding anything to the contrary contained in any contract or in any other law for the ...
17 Right to appeal
17. Right to appeal.- 1.     Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the sec...
18 Appeal to Appellate Tribunal
18. Appeal to Appellate Tribunal.- 1.     Any person aggrieved, by any order made by the Debts Recovery Tribunal under section 17, may prefer an appeal to a...
19 Right of borrower to receive compensation and costs in certain cases
19. Right of borrower to receive compensation and costs in certain cases.- If the Debts Recovery Tribunal or the Appellate Tribunal, as the case may be, on a...
Chapter IV Central Registry
20 Central Registry
20. Central Registry.- 1.     The Central Government may, by notification, set up or cause to be set up from such date as it may specify in such notificatio...
21 Central Registrar
21. Central Registrar.- 1.     The Central Government may, by notification, appoint a person for the purpose of registration of transactions relating to sec...
22 Register of securitisation, reconstruction and security interest transactions
22. Register of securitisation, reconstruction and security interest transactions.- 1.     For the purposes of this Act, a record called the Central Register...
23 Filing of transactions of securitisation, reconstruction and creation of security interest
The particulars of every transaction of securitisation, asset reconstruction or creation of security interest shall be filed, with the Central Registrar in th...
24 Modification of security interest registered under this Act
24. Modification of security interest registered under this Act.- Whenever the terms or conditions, or the extent or operation, of any security interest regi...
25 Securitisation company or reconstruction company or secured creditors to report satisfaction of security interest
25. Securitisation company or reconstruction company or secured creditors to report satisfaction of security interest.- 1.     The securitisation company or...
26 Right to inspect particulars of securitisation, reconstruction and security interest transactions
26. Right to inspect particulars of securitisation, reconstruction and security interest transactions.- 1.     The particulars of securitisation or reconstr...
Chapter V Offences and penalties
27 Penalties
27. Penalties.- If a default is made-a.     in filing under section 23, the particulars of every transaction of any securitisation or asset reconstruction or...
28 Penalties for non-compliance of direction of Reserve Bank
28. Penalties for non-compliance of direction of Reserve Bank.- If any securitisation company or reconstruction company fails to comply with any direction is...
29 Offences
29. Offences.- If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made there under,...
30 Cognizance of offence
30. Cognizance of offence.- No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try any offence punishab...
31 Provisions of this Act not to apply in certain cases
31. Provisions of this Act not to apply in certain cases.- The provisions of this Act shall not apply to-a.     a lien on any goods, money or security given...
32 Protection of action taken in good faith
32. Protection of action taken in good faith.- No suit, prosecution or other legal proceedings shall lie against any secured creditor or any of his officers ...
33 Offences by companies
33. Offences by companies.- 1.     Where an offence under this Act has been committed by a company, every person who at the time the offence was committed w...
34 Civil court not to have jurisdiction
34. Civil court not to have jurisdiction.- No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts ...
35 The provisions of this Act to override other laws
35. The provisions of this Act to override other laws.-The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith containe...
36 Limitation
36. Limitation.- No secured creditor shall be entitled to take all or any of the measures under sub-section (4) of section 13, unless his claim in respect of...
37 Application of other laws not barred
37. Application of other laws not barred.- The provisions of this Act or the rules made there under shall be in addition to, and not in derogation of, the Co...
38 Power of Central Government to make rules
38. Power of Central Government to make rules.- 1.     The Central Government may, by notification and in the Electronic Gazette as defined in clause (s) of...
39 Certain provisions of this Act to apply after Central Registry is set-up or cause to be set-up
39. Certain provisions of this Act to apply after Central Registry is set-up or cause to be set-up.- The provisions of sub-sections (2), (3) and (4) of secti...
40 Power to remove difficulties
40. Power to remove difficulties.- 1.     If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order publ...
41 Amendments of certain enactments
41. Amendments of certain enactments.-The enactments specified in the Schedule shall be amended in the manner specified therein....
42 Repeal and saving
42. Repeal and saving.- 1.     The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002 (2 of 2002) is...
Schedule Schedule
The Schedule
(See section 41)1956 42 The Securities Contracts (Regulation) Act, 1956.In section 4A, in sub-section (1), after clause (vi), insert the followi...
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