The Parliament of India paved the way for formation of Securitisation Companies and Restructuring Companies (`SC/RCs`) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (`SARFAESI Act`), whereafter the Reserve Bank of India (`RBI`) has granted certificates of registration to 13 Companies to pursue the business of securitisation and asset reconstruction.

 

In the past seven years, since the enactment, a myriad of issues have been faced by ASC/RCs on the regulatory aspects, duties and taxes, and capital and finance raising. To pursue their common interests, the SC/RCs envisioned that a common platform / forum would be better suited to discuss and collectively address pending issues which may range from regulatory concerns to business related aspects.

Keeping the above need in view, SC/RCs have associated to set up a working group drawing Members from the Licensed SC/RCs to be known as the Association of ARCs in India

(`Association`). The Association is governed by a set of Rules for practice for uniform adoption by the Members and is also planning to come out with a Code of Conduct for SC/RCs.