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RBI Seeks Comments on change in or take over of the Management of the business of the borrower under SARFAESI Act, 2002

The Reserve Bank of India has today placed on its website draft regulatory guidelines for securitisation and reconstruction companies. The draft guidelines relate to change in or takeover of the management of the business of the borrowers by Securitisation Companies/Reconstruction Companies. The Reserve Bank has invited comments on the draft guidelines from banks, financial institutions, non-banking finance companies, securitisation companies, reconstruction companies, chambers of commerce and members of public. The responses can be emailed within 60 days.

The Reserve Bank of India has framed these guidelines under section 9(a) of the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002).

Sabeeta Badkar
Assistant Manager

Press Release : 2008-2009/837

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