RBI/2006-07/129
DNBS.PD.CC.3/SCRC/10.30.000/2006-2007
September 20, 2006
The Securitisation Companies
and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003
The Reserve Bank of India, vide
Notification No.DNBS.4/ED
(SG)/-2004 dated March 29, 2004 had increased the minimum owned fund requirement
for commencing the business of securitisation or asset reconstruction to an
amount not less than 15% of the total financial assets acquired or to be acquired
by the Securitisation Company or Reconstruction Company on an aggregate basis
or Rs 100 crore whichever is lower irrespective of whether the assets are transferred
to a trust set up for the purpose of securitisation or not. The Bank had therein
directed that the Securitisation Company or Reconstruction Company may invest
the amount of owned fund in addition to the modes specified in clause (ii) of
Paragraph 10 of the Securitisation Companies and Reconstruction Companies (Reserve
Bank) Guidelines and Directions, 2003 in the Security Receipts issued by the
trust set up for the purpose of securitisation.
2. It has been decided that Securitisation
Companies or Reconstruction Companies shall invest in security receipts an amount
not less than 5% issued under each scheme with immediate effect. In the case
of Securitisation Companies or Reconstruction Companies which have already issued
the security receipts, such companies shall achieve the minimum subscription
limit in security receipts under each scheme, within a period of six months
from the date of Notification issued in this regard. A copy of the Notification
No.DNBS.5/CGM(PK)-2006 dated September 20, 2006 is enclosed.
(P. Krishnamurthy)
Chief General Manager-in-Charge
Reserve Bank of India
Department of Non-Banking Supervision
Central Office, Centre 1
World Trade Centre
Mumbai 400 005
Notification No.DNBS.5 /CGM (PK)/-2006
dated
September 20, 2006
The Securitisation Companies
and Reconstruction Companies (Reserve Bank) (Amendment) Guidelines and Directions,
2006
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 Section 12 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 shall stand amended with immediate effect, as follows, namely:-
Amendment of the Directions
In the Securitisation Companies
and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003,
paragraph 5(v) shall be substituted as under:-
(V) the Securitisation Company
or Reconstruction Company shall invest in the security receipts issued by the
trust set up for the purpose of securitisation, an amount not less than 5% under
each scheme:
provided further that-
a Securitisation Company or Reconstruction
Company which has already issued the security receipts shall achieve the minimum
subscription limit in security receipts under each scheme within a period of
six months from the date of the Notification.
(P.Krishnamurthy)
Chief General Manager-In-Charge
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