By JUSTICE B P BANERJEE

The Act embraces three major aspects namely, securitisation, asset reconstruction and the enforcement of the security interests. The enforcement of the security has been made simple in the cases where there is incidence of continued default by the borrowers and their accounts have been classified as non-performing assets (NPA) in the books of banks/financial institutions which have provided the financial assistance. The present Act in a special legislation. It may go a long way in reducing the level of NPA. It is also likely to redefine the relationship of the borrower and the secured creditors. The Act may also help in keeping a check on the NPAs in future as well and will bring in new financial culture in the system. The Act is also meant to regulate the business of Securitisation and asset reconstruction. Securitisation is a new financial product for the Indian market. The provisions of the Act deal with the general methodology which will be adopted by the Securitisation companies to issue the security receipts/debentures to the qualified institutional buyers [QIB]. These receipts will be privately placed with them and there would not be any public issue. The next part of the Act deals with the asset reconstruction which inter-alia is not new to the Indian corporate sector.

The Secured Creditors (Banks/FI) have been given wide powers for the purpose of the take-over of the assets or the management of the borrowers. The secured creditors can have recourse to either of these with a provision to sell these assets or take other actions for the purpose of the realisation of the financial assistance. This power is available with SFCs under section 29 of the SFC’s Act, 1951. It has been widely resorted to by the SFC’s. The Chapter III of the Act is a Major touchstone of the Act. It authorises the secured creditors to take over the assets or the management of the borrower company. It is expected that the book would be useful to the banks/financial institution, the financial consultants, legal practitioners and Company Secretaries. “This one volume comprehensive edition by the eminent author is undoubtedly going to receive hearty welcome from the legal profession. The maiden edition on the new subject embodies all uptodate statutory material — Act, Rules, Regulations, Guidelines etc., the table of cases includes a long list of cases ......, the index in the end contains voluminous topics as discussed in the book. This handy book is going to be a real guide and a must for lawyers, Judges, chartered accountants, banks, financial institutions, the financial consultants and company secretaries. A work of great learning, accurate information and skilful presentation. It is a tremendous achievement.....” —An Appraisal

WHAT THE BOOK CONTAINS · Division I : An Overview of the Act — · An Overview of the Act · Division II : The Securitisation and Reconstruction of Financial Interest AND Enforcement of Security Interest Act, 2002 — · Preliminary · Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions · Enforcement of Security Interest · Central Registry · Offences and Penalties · Miscellaneous · Division III : Securitisation and enforcement of Security — · The Securitisation: Concept and Principles · Securitisation: A Structured Financial Instrument · Types of Securitisation Deals · Securitisation in India · Structuring the Securitised Deals · Problem Areas in Securitisation Deals · Regulatory Framework for Debenture Issues and Security Receipts · Credit Enhancement and Rating · Debenture Trustees · Creation of Security for Debentures · SEBI—Guidelines for issue of Debt Instruments/ Security Receipts · Enforcement of Security · Existing Recovery Mechanism · Master Circular—Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to the Advances Portfolio · Guideline on Preventing Slippages · The OTS Mechanism : Takling NPA’s · Reschedulement/Takeovers · Division IV : Appendices

Published Year: 2003 Format: n/a ISBN: INBL10 Publisher: Lexis Nexis Butterworths Wadhwa Nagpur No of Pages: 1200 Our Price: India. Rs. 995.00 Reviews: 0 reivew(s).

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