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  • An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidental thereto.

    BE it enacted by Parliament in the Fifty-third year of Republic of India as follows: --
    CHAPTER I

    PRELIMINARY


    1. Short title, extent and commencement

    2. Definitions :- (1) General
        a.   Appellate Tribunal
        b.   asset reconstruction
        c.   bank
        d.   banking company
        e.   Board
        f.   borrower
        g.   Central Registry
        h.   corresponding new bank
        ha. corresponding new bank
        i.   Debts Recovery Tribunal
        j.   default
        k.   financial assistance
        l.   financial asset
        m.   financial institution
        n.   hypothecation
        o.   non-performing asset
        p.   notification
        q.   obligor
        r.   originator
        s.   prescribed
        t.   property
        u.   qualified institutional buyer
        v.   reconstruction company
        w.   Registrar of Companies
        x.   Reserve Bank
        y.   scheme
        z.   securitisation
        za. securitisation company
        zb. security agreement
        zc. secured asset
        zd. secured creditor
        ze. secured debt
        zf. security interest
        zg. security receipt
        zh. sponsor
        zi. State Bank of India
        zj. subsidiary bank





      CHAPTER II

      REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS OF BANKS AND FINANCIAL INSTITUTIONS


    3. Registration of securitisation companies or reconstruction companies.

    4. Cancellation of certificate of registration

    5. Acquisition of rights or interest in financial assets

    6. Notice to obligor and discharge of obligation of such obligor

    7. Issue of security by raising of receipts or funds by securitisation company or reconstruction company

    8. Exemption from registration of security receipt

    9. Measures for assets reconstruction

    10. Other functions of securitisation company or reconstruction company

    11. Resolution of disputes

    12. Power of Reserve Bank to determine policy and issue directions

      12A. Furnishing statments to Reserve Bank of India




      CHAPTER III

      ENFORCEMENT OF SECURITY INTEREST


    13. Enforcement of security interest

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

    15. Manner and effect of take over of management

    16. No compensation to directors for loss of office

    17. Right to appeal

    18. Appeal to Appellate Tribunal

    19. Right of borrower to receive compensation and costs in certain cases




      CHAPTER IV

      CENTRAL REGISTRY


    20. Central Registry

    21. Central Registrar

    22. Register of securitisation, reconstruction and security interest, transactions

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

    24. Modification of security interest registered under this Ordinance

    25. Securitisation company or reconstruction company or secured creditors to report satisfaction of security interest

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




      CHAPTER V

      OFFENCES AND PENALTIES


    27. Penalties

    28. Penalties for non-compliance of direction of Reserve Bank

    29. Offences

    30. Cognizance of offence




      CHAPTER-VI


    31. Provisions of this Ordinance not to apply in certain cases

    32. Protection of action taken in good faith

    33. Offences by companies

    34. Civil court not to have jurisdiction

    35. The provisions of this Ordinance to override other laws

    36. Limitation

    37. Application of other laws not barred

    38. Power of Central Government to make rules

    39. Power to remove difficulties

    40. Amendments of certain enactments

    41. Repeal and saving