The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is an Indian law that allows banks and financial institutions to recover their dues from borrowers by converting their non-performing assets into tradable securities.
Summary
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was enacted by the Indian Parliament to facilitate the recovery of defaulted loans by banks and financial institutions. Under this Act, banks and financial institutions can seize the assets of a defaulting borrower and sell them to recover the unpaid dues. The Act also allows banks to convert the non-performing assets into tradable securities, which can be sold to investors. This enables banks to recover their dues without having to rely on the borrower to repay the loan. The Act has been instrumental in improving the health of the Indian banking sector by reducing the amount of non-performing assets held by banks.
Table of Contents
| # | Section | Link |
|---|---|---|
| 1 | Section 1: Short Title, Extent And Commencement | Open |
| 2 | Section 2: Definitions | Open |
| 3 | Section 3: Registration Of Asset Reconstruction Companies | Open |
| 4 | Section 4: Cancellation Of Certificate Of Registration | Open |
| 5 | Section 5: Acquisition Of Rights Or Interest In Financial Assets | Open |
| 6 | Section 5A: Transfer Of Pending Applications To Any One Of Debts Recovery Tribunals In Certain Cases | Open |
| 7 | Section 6: Notice To Obligor And Discharge Of Obligation Of Such Obligor | Open |
| 8 | Section 7: Issue Of Security By Raising Of Receipts Or Funds By Asset Reconstruction Company | Open |
| 9 | Section 8: Exemption From Registration Of Security Receipt | Open |
| 10 | Section 9: Measures For Assets Reconstruction | Open |
| 11 | Section 10: Other Functions Of Asset Reconstruction Company | Open |
| 12 | Section 11: Resolution Of Disputes | Open |
| 13 | Section 12: Power Of Reserve Bank To Determine Policy And Issue Directions | Open |
| 14 | Section 12A: Power Of Reserve Bank To Call For Statements And Information | Open |
| 15 | Section 12B: Power Of Reserve Bank To Carry Out Audit And Inspection | Open |