Tools of establishing banker’s right over assets of the borrower

(This article explains how the actional claim, bailment, charge creation, hypothecation, lien, right of set-off, pledge, assignment, Trust receipt, etc. establish the right to recover from the specified assets of the borrower.) The charge creation means the establishment of the lender’s right to recover from the specified assets of the borrower, in case the recovery…

Full details of the recovery process through SARFAESI ACT 2002

(This article gives the details like rights of secured creditors, Application of mind and care is required in the service of notice of SARFAESI DEMAND NOTICE, POSSESSION NOTICE & SALE NOTICE, Special care to be taken while taking possession of movable properties, method of sale of secured property by way of inviting tenders from the public or by…

Securitisation of stressed assets: RBI releases paper on regulatory purview

As per the current guidelines, Securitisation is allowed only in the case of standard assets while lenders have to largely rely on Asset Reconstruction Companies (ARCs) for bad assets. Based on market feedback, stakeholder consultations, and the recommendations of the Task Force on Development of Secondary Market for Corporate Loans, RBI decided to introduce a…

New list of eligible credit rating agencies for the risk weighting banks’ claims for capital adequacy purposes

The Securities and Exchange Board of India canceled the Certificate of Registration (CoR) granted to Brickwork Ratings India Private Limited as a Credit Rating Agency (CRA), on October 6, 2022. In view of that RBI on October 9, 2022, advised Regulated Entities/ Market Participants that in respect of ratings/credit evaluations required in terms of any…