(1) For the purposes of this Ordinance, a record called the Central Register shall be kept at the head office of the Central Registry for entering the particulars of the transactions relating to—
(a) securitisation of financial assets;
(b) reconstruction of financial assets; and
(c) creation of security interest.
(2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the Central Registrar to keep the records wholly or partly in computer floppies, diskettes or in any other electronic form subject to such safeguards as may be prescribed.
(3) Where such register is maintained wholly or partly on computer under subsection (2), any reference in this Ordinance to entry in the Central Register shall be construed as a reference to any entry as maintained on computer or in any other electronic form.
(4) The register shall be kept under the control and management of the Central Registrar.
Filing of transactions of securitisation, reconstruction and creation of security Interest.
23. The particulars of every transaction of secuntisation, asset reconstruction or creation of security interest shall be filed, with the Central Registrar in the manner and on payment of such fee as may be prescribed, within thirty days after the date of such transaction or creation of security, by the securitisation company or reconstruction company or the secured creditor, as the case may be:
SEC. 1J THE GAZETTE OF fNDIA EXTRAORDINARY 15
Provided that the Central Registrar may allow the filing of the particulars of such transaction or creation of security within thirty days next following the expiry of the saidperiod of thirty days on payment of such additional fees not exceeding ten times the amount of such fee.
24. Whenever the terms or conditions, or the extent or operation of any security interest registered under this Chapter arc or is modified, it shall be the duty of die securitisation company or the reconstruction company or the secured creditors, as the case may be, to send to the Central Registrar, the particulars of such modification, and the provisions of this Chapter as to registration of a security interest shall apply to such modification of such security interest.
Modification of security interest registered under this Ordinance
25. (I) The securitisation company or reconstruction company or the secured creditors as the case may be, shall give intimation to the Central Registrar of the payment or satisfaction in full, of any security interest relating to the securitisation company or the reconstruction company or the secured creditors and requiring registration under this Chapter, within thirty days from the date of such payment or satisfaction.
Sccuntisiuion company or reconstruction company nr secured creditors to report satisfaction oT security interest.
(2) The Central Registrar shall, on receipt of such intimation, cause a notice to be sent to the securitisation company or reconstruction company or the secured creditors calling upon it to show cause within a time not exceeding fourteen days specified in such notice, as to why payment or satisfaction should not be recorded as intimated to the Central Registrar.
(3) If no cause is shown, the Central Registrar shall order that a memorandum of satisfaction shall be entered in the Central Register.
(4) If cause is shown, the Central Registrar shall record a note to that effect in the Central Register, and shall inform the borrower that he has done so.
26. (I) The particulars of securitisation or reconstruction or security interest entered in the Central Register of such transactions kept under section 22 shall be open during the business hours for jnpsection by any person on payment of such fees as may be prescribed.
(2) The Centra] Register referred to in sub-section (I) maintained in electronic form, shall also be open during the business hours for the inspection of arty person through electronic media on payment of such fees as may be prescribed.
Right In inspect particulars of sccurilisation, reconstruction and security interest transactions CHAPTERV OFFENCES AND PENALTIES
27. If a default is made—
(a) in filing under section 23, the particulars of every transaction of any securitisation or asset reconstruction or security interest created by a securitisation company or reconstruction company or secured creditors; or
(b) in sending under section 24, the particulars of the modification referred to in that section; or
(c) in giving intimation under section 25, every company and every officer of the company or the secured creditor and every officer of the secured creditor who is in default shall be punishable with fine which may extend to five thousand rupees for every day during which the default continues.
Penalties.
28. If any securitisation company or reconstruction company tails to comply with any direction issued by the Reserve Bank under section 12, such company and every officer of the company who is in default, shall be punishable with fine which may extend to five lakh rupees and in the case of a continuing offence, with an additional fine which may extend to ten thousand rupees for every day during which the default continues.
Penalties for noncompliance of direction of Reserve Bank.
16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- - Offences, 29. If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Ordinance or of any rules made thereunder, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.
Cognizance of offence.
30. No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try an offence punishable under this Ordinance.
Provisions of this Ordinance not to apply in certain cases.
CHAPTER VI MISCELLANEOUS
31. The provisions of this Ordinance shall not apply to—
(a) a lien on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force; 9 of 1872.
3 of 1930.
(b) a pledge of movables within the meaning of section 172 of the Indian Contract Act, 1872; 9 of 1872.
(c) creation of any security in any aircraft as defined in clause (I) of section 2 of the Aircraft Act, 1934; 24 ol 1934.
(d) creation of security interest in any vessel as defined in clause (55) of section 3 of the Merchant Shipping Act. 1958; 44 o f 195R
(e) any conditional sale, hire-purchase or lease or any other contract in which no security interest has been created;
if) any rights of unpaid seller under section 47 of the Sale of Goods Act, 1930 3 of 1930
(g) any properties not liable to attachment or sale under the nrst proviso to subsection (]) of section 60 of the Code of Civil Procedure, 1908;
(h) any security interest for securing repayment of any financial asset not exceeding one lakh rupees;
(/) any security interest created in agricultural land;
(j) any case in which the amount due is less than twenty per cent, of the principal amount and interest thereon.
5 of 190H.
Protection of action taken in good faith.
32. No suit, prosecution or other legal proceedings shall lie against any secured creditor or any of his officers or manager exercising any of the rights of the secured creditor or borrower for anything done or omitted to be done in good faith under this Ordinance.
Offences by companies.
33. (/) Where an offence under this Ordinance has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Ordinance, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (/), where an offence under this Ordinance has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,— SEC. II THE GAZETTE OF INDIA EXTRAORDINARY 17
(a) "company1' means any body corporate and includes a firm or other association of individuals; and
(i) "director", in relation to a firm, means a partner in the firm.
51 of 1993.
34. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal or an Appellate Tribunal is empowered by or under this Ordinance to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Ordinance or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Civil court not to have jurisdiction
35. The provisions of this Ordinance shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.
The provisions of this Ordinance to override other laws 36 of 1963.
36. No secured creditor shall be entitled to take all or any of the measures under subsection (4) of section 13, unless his claim in respect of the financial asset is made within the period of limitation prescribed under the Limitation Act, 1963.
Limitation, 1 of 1956 •12 of 1956 15 of 1992 51 of 1993.
37. The provisions of this Ordinance or the rules made thereunder shall be in addition to, and not in derogation of, the Companies Act, 1956, the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India Act, 1992, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 or any other law lor the time being in force, Application of other laws not barred.
21 of 2000
38. (/) The Central Government may, by notification and in the blectronic Oazette as defined in clause (.*•) of section 2 of the Information Technology Act, 2000, make rules foi carrying out the provisions of this Ordinance.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the form and manner in which an application may be filed under sub-section
(10) of section 13;
(b) the manner in which the rights of a secured creditor may be exercised by one or more of his officers under sub-section {12) of section 13;
(c) the safeguards subject to which the records may be kept under sub-section
(2) of section 22;
(d) the manner in which the particulars of every transaction of securitisation shall be filed under section 23 and fee for filing such transaction;
(e) the fee for inspecting the particulars of transactions kept under section 22 and entered in the Central Register under sub-section (/) of section 26;
(/) the fees for inspecting the Central Register maintained in electronic form under sub-section (2) of section 26;
(g) any other matter which is to be, or may be, prescribed, in respect of which provision is to be, or may be, made by rules.
(3) Every rule made under this Ordinance shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Power of Central Government to make rules 18 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Certain provisions of this Ordinance to apply after registry is set up or caused to be set up.
39. The provisions of sub-sections (2), (i) and (4) of section 20 and sections 21, 22, 23, 24, 25, 26 and 27 shall apply after the Central Registry is set up or caused to be set up under sub-section (/) of section 20.
Power to remove difficulties.