Introduction
The Reserve Bank of India (‘RBI’) released the Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024 dated 24.04.2024 (‘Directions’), which shall apply to every Asset Reconstruction Company (‘ARC’) registered with RBI under s. 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI’).
The directions have been segregated into seven sections addressing the introduction, registration and related matters, guidelines on asset reconstruction and securitisation, prudential regulations, governance conduct, accounting and disclosures, and miscellaneous instructions.
Section-I: Introduction
Section II- Registration and Related Matters
Section III- Guidelines on Asset Reconstruction and Securitisation
Section IV: Prudential Regulations
Section V: Governance and Conduct
Section VI: Accounting and Disclosures
Section VII- Miscellaneous Instructions
Our Analysis
End Notes
Attaching the RBI Notification for ready reference:
Authored by Huzaifa Salim, Advocate at Metalegal Advocates. The views expressed are personal and do not constitute legal opinion.