(a) whether the Government has examined the modalities of the Asset Reconstruction Companies;
(b) if so, whether legal aspect involved in setting up of such companies has also been examined;
(c) if so, the details thereof and the outcome thereof; and
(d) the time by which the Government proposes to set up such companies ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a), (b), (c) & (d):- Government had enacted The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) in December 2002, which came into effect from June 21, 2002. In terms of the SARFAESI Act, a Securitisation Company/ Reconstruction Company can be set up. In order to commence or carry on the business of securitisation/asset reconstruction, a company has to obtain a certificate of registration from RBI. The Bank has so far granted Certificate of Registration to three companies.