CENTRAL REGISTRYCentral

Section 22 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

(1)For the purposes of this Act, a record called the Central Register shall be kept at the head office of the Central Registry for entering the particulars of the transactions relating to--
1. (a)securitisation of financial assets;
2. (b)reconstruction of financial assets; and
3. (c)creation of security interest.
(2)Notwithstanding anything contained in sub-section (1), it shall be lawful for the Central Registrar to keep the records wholly or partly in computer, floppies, diskettes or in any other electronic form subject to such safeguards as may be prescribed.
(3)Where such register is maintained wholly or partly in computer, floppies, diskettes or in any other electronic form, under sub-section (2), any reference in this Act to entry in the Central Register shall be construed as a reference to any entry as maintained in computer or in any other electronic form.
(4)The register shall be kept under the control and management of the Central Registrar.

Summary

The government must maintain a record called the Central Register at the head office of the Central Registry.
This register is used to record details of all deals related to securitisation and asset reconstruction.
It also tracks the creation of security interests, which are legal rights lenders get over a borrower's property.
The Central Registrar has the authority to keep these records in electronic form, such as on computers or disks.
Any reference in the law to an entry in the register also includes entries kept in these electronic formats.
The Central Registrar is the person responsible for the overall control and management of this register.

Practical examples

1A bank in Chennai lends money to a factory and takes the factory land as security. The details of this legal right are sent to the Central Registry in Delhi. A clerk enters the details into the digital Central Register so that anyone searching will know the bank has a claim on that land.

2An asset reconstruction company buys a package of five hundred home loans from a bank. The Central Registrar ensures that this massive transfer of rights is properly recorded in the electronic database, which is stored on secure servers at the main office.

FAQ

1. Where is the Central Register located according to Section 22 of the Securitisation Act?

Section 22 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 states that the Central Register is kept at the head office of the Central Registry.

2. Can the Central Register be kept on a computer under Section 22 of the 2002 Act?

Yes, Section 22(2) of the 2002 Act allows the Central Registrar to keep records wholly or partly in computer or any other electronic form.

3. Who manages the records of securitisation under Section 22 of the Finance Law?

Under Section 22(4) of the 2002 Act, the register is kept under the control and management of the Central Registrar.

4. What specific transactions are recorded in the Central Register under Section 22 of the 2002 Act?

The register contains particulars of transactions relating to securitisation of assets, reconstruction of assets, and the creation of security interests.

Test yourself

Q1.Under Section 22 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where must the Central Register be kept?

Q2.According to Section 22 of the 2002 Act, in what form can the records be maintained?

Q3.Who has control over the Central Register under Section 22 of the Finance Law?

Q4.Under Section 22 of the 2002 Act, which of these is NOT required to be entered in the Central Register?

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