The Companies Act 2013 mandates the registration of charges created by companies to ensure transparency and protect the interests of creditors. Provisions regarding this are outlined in Sections 77 to 87 of the Act Section 77: Duty to Register Charges Every company must register the particulars of any charge created over its property, assets, or…
In India, a certified copy of a document of title to immoveable property is generally acceptable as legal evidence when the original is lost or unavailable, provided it is issued by the concerned Sub-Registrar’s Office and follows the legal process under the Registration Act, 1908 Legal Basis for Acceptability A certified copy of title documents—including…
A Document of Title to Immoveable Property in India is a formal legal document that establishes and proves ownership of an asset like land, a building, or any immovable property. Essential Meaning A Document of Title (primarily called a Title Deed) is issued when property ownership is transferred through purchase, inheritance, gift, or other means.…
In India’s dynamic financial landscape, trust remains the cornerstone of banking. To safeguard this trust and strengthen customer protection, the Reserve Bank of India (RBI) has established the **Banking Ombudsman framework**—an institutional mechanism to resolve complaints fairly, quickly, and transparently. Appointment of the Banking Ombudsman The Banking Ombudsman is a senior official appointed by the…
The term “charge” carries multiple meanings across disciplines. In law, physics, and finance, its interpretation changes with context. However, in the banking and securities domain, a charge has a very specific significance: it is a legal right granted by a borrower to a lender over assets as security for repayment of a loan. This concept…
Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities.Both Asset-backed securities (ABS) and mortgage-backed securities (MBS) are fixed-income financial securities collateralized (backed) by a pool of…
(This post elucidates the entire process of creation of charge or modification of charge and satisfaction of charge and the requirement of information in the form of a resolution passed in the Board meeting) According to Section 77 of the Companies Act, every company that creates a charge shall register the same with the Registrar…
In the case of running accounts like current accounts or cash credit accounts, normally there is no specific appropriation of funds to exact debit. In such cases, it is the first item on the debit side that is discharged or reduced by the first item on the credit side. This principle was originally formulated in…
When banks lend money, they need assurance that the loan will be repaid. This assurance often comes in the form of securities—assets pledged by the borrower that the bank can claim if repayment fails. The law relating to securities and modes of charge provides the legal framework for creating, protecting, and enforcing these rights. For…
A mortgage-backed security (MBS) is a bond type security in which the collateral is provided by a pool of mortgages. For example, A borrows money from Bank ‘B’ mortgaging his house to Bank ‘B’. The Bank ‘B’ sells the mortgage to a company ‘C’ (which may be a government agency or investment bank or private…