THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002
ACT NO. 54 OF 2002, 17th December, 2002.
An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and to provide for a Central database of security interests created on property rights, and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:—
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| Sections | Particulars |
| Preamble | |
| Chapter I | Preliminary |
| 1 | Short title, extent and commencement |
| 2 | Definitions |
| 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.-Notwithstanding anything contained in sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908) |
| 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 |
| 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 takeover 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 Act |
| 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 |
| 31 | Provisions of this Act 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 Act to override other laws |
| 36 | Limitation |
| 37 | Application of other laws not barred |
| 38 | Power of Central Government to make rules |
| 39 | Certain provisions of this Act to apply after Central Registry is set-up or cause to be set-up |
| 40 | Power to remove difficulties |
| 41 | Amendments of certain enactments |
| 42 | Repeal and saving |
| Schedule | |
| The Schedule | |