SectionsParticulars
Preamble
An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidenta...
Chapter IPreliminary
1Short 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...
2Definitions
2. Definitions.- 1.     In this Act, unless the context otherwise requires,-a.     Appellate Tribunal means a Debts Recovery Appellate Tribunal established u...
Chapter IIRegulation of securitisation and reconstruction of financial assets of banks and financial institutions
3Registration 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...
4Cancellation 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...
5Acquisition 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 ...
6Notice 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...
7Issue 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...
8Exemption 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...
9Measures 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...
10Other 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...
11Resolution 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...
12Power 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 IIIEnforcement of security interest
13Enforcement 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...
14Chief 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...
15Manner 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...
16No 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 ...
17Right 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...
18Appeal 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...
19Right 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 IVCentral Registry
20Central 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...
21Central Registrar
21. Central Registrar.- 1.     The Central Government may, by notification, appoint a person for the purpose of registration of transactions relating to sec...
22Register 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...
23Filing 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...
24Modification 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...
25Securitisation 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...
26Right 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 VOffences and penalties
27Penalties
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...
28Penalties 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...
29Offences
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,...
30Cognizance 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...
31Provisions 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...
32Protection 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 ...
33Offences 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...
34Civil 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 ...
35The 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...
36Limitation
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...
37Application 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...
38Power 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...
39Certain 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...
40Power 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...
41Amendments of certain enactments
41. Amendments of certain enactments.-The enactments specified in the Schedule shall be amended in the manner specified therein....
42Repeal 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...
ScheduleSchedule
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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