The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002
The Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act 2002[SARFAESI]
Asset reconstruction – acquisition by any securitisation Co or reconstruction Co, of any right or interest of any bank/financial institution, in any financial assistance, for the purpose of realization of such financial assistance
Financial assistance – means any loan/advance granted or any debenture/bond subscribed /any guarantees given / LOC established/any other credit facility extended by any bank/financial institution
Originator – owner of financial asset
Securitisation – acquisition of financial asset, by any securitisation Co/reconstruction Co, from any originator, whether by raising of funds by such securitisation Co/ reconstruction Co from qualified institutional buyers, by issue of security receipts representing undivided interest in such financial asset/otherwise.
Obligator – person liable to originator
No securitisation Co/reconstruction Co shall commence /carry on business of securitisation /asset reconstruction without certificate of registration granted by RBI & having the owned fund of not less than Rs.2crore or such other amount not exceeding 15% of total financial assets acquired/ to be acquired. Application for registration shall be made to reserve bank in such specified form & manner.
RBI shall cancel certificate of incorporation, if it ceases to carry on business of securitisation & asset reconstruction or ceases to receive/hold any investment from qualified institutional buyer or failed to comply with any conditions subject to which certificate of registration is granted to it, or fail to comply with directions of RBI, maintain account in accordance with requirement of law or RBI directions, submit/offer books of accounts /documents for inspection when demanded by RBI, obtain prior approval of RBI for any substantial change in its management/change of location of registered office/ change in its
Asset reconstruction – acquisition by any securitisation Co or reconstruction Co, of any right or interest of any bank/financial institution, in any financial assistance, for the purpose of realization of such financial assistance
Financial assistance – means any loan/advance granted or any debenture/bond subscribed /any guarantees given / LOC established/any other credit facility extended by any bank/financial institution
Originator – owner of financial asset
Securitisation – acquisition of financial asset, by any securitisation Co/reconstruction Co, from any originator, whether by raising of funds by such securitisation Co/ reconstruction Co from qualified institutional buyers, by issue of security receipts representing undivided interest in such financial asset/otherwise.
Obligator – person liable to originator
No securitisation Co/reconstruction Co shall commence /carry on business of securitisation /asset reconstruction without certificate of registration granted by RBI & having the owned fund of not less than Rs.2crore or such other amount not exceeding 15% of total financial assets acquired/ to be acquired. Application for registration shall be made to reserve bank in such specified form & manner.
RBI shall cancel certificate of incorporation, if it ceases to carry on business of securitisation & asset reconstruction or ceases to receive/hold any investment from qualified institutional buyer or failed to comply with any conditions subject to which certificate of registration is granted to it, or fail to comply with directions of RBI, maintain account in accordance with requirement of law or RBI directions, submit/offer books of accounts /documents for inspection when demanded by RBI, obtain prior approval of RBI for any substantial change in its management/change of location of registered office/ change in its