SARFAESI : The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003

Notification DNBS(PD-SC/RC) NO. 7/CGM (ASR)/-2010, dated 21-4-2010

The Reserve Bank of India, having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Reserve Bank to regulate the financial system to the advantage of the country and to prevent the affairs of Securitisation Company or Reconstruction Company from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such Securitisation Company or Reconstruction Company, hereby in exercise of the powers conferred under clause (b) of sub-section (1) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, directs that ‘The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003’ (hereinafter called ‘guidelines’) shall stand amended, as follows, namely:-

1. Paragraph 7(2) of the guidelines shall be substituted as under:

“(2) (i) Change or take Over of Management

The Securitisation Company or Reconstruction Company shall take the measures specified in sections 9(a) of the Act, in accordance with instructions contained in Circular DNBS/PD (SC/RC) No. 17/26.03.001/2009-10, dated April 21, 2010 as amended from time to time.

(ii) Sale or Lease of a part or whole of the business of the borrower

No Securitisation Company or Reconstruction Company shall take the measures specified in section 9(b) of the Act, until the Bank issues necessary guidelines in this behalf.

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