CENTRAL REGISTRYCentral

Section 23 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

1[(1)] The particulars of every transaction of securitisation, asset reconstruction or creation of security interest shall be filed, with the Central Registrar in the manner and on payment of such fee as may be prescribed 2***: 3* * * * * 4[Provided 5*** that the Central Government may, by notification, require registration of all transactions of securitisation, or asset reconstruction or creation of security interest which are subsisting on or before the date of establishment of the Central Registry under sub-section (7) of section 20 within such period and on payment of such fees as may be prescribed.] 6[(2) The Central Government may, by notification, require the registration of transaction relating to different types of security interest created on different kinds of property with the Central Registry.

(3)The Central Government may, by rules, prescribe forms for registration for different types of security interest under this section and fee to be charged for such registration.]

Summary

The details of every transaction involving securitisation or the creation of security interest must be filed with the Central Registrar.
Lenders must pay a specific fee when they file these transaction details.
The government has the power to set different forms and fees for different types of security interests or properties.
Even transactions that were made before the Central Registry was established may need to be registered if the government issues a notification.
Lenders have a duty to report any changes or modifications to a registered security interest to the Central Registrar.
When a debt is fully paid or the security interest is satisfied, the lender must inform the Central Registrar within thirty days.

Practical examples

1On July 1st, a new finance company is formed and starts lending against cars. They must file the details of every car loan they make with the Central Registrar, using the specific digital form and paying the five hundred rupee fee required by the rules.

2A bank had a mortgage on a building since 1998. In 2024, the government issues a notice saying all old mortgages must be registered. The bank has to submit the old paperwork to the Central Registrar and pay the registration fee to ensure their claim is officially on the modern record.

FAQ

1. Is there a fee for filing transactions under Section 23 of the Securitisation Act?

Yes, Section 23 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 requires that particulars of transactions be filed on payment of a prescribed fee.

2. Must old loans be registered under Section 23 of the 2002 Act?

Yes, if the Central Government issues a notification, Section 23 allows them to require registration of transactions that existed before the Central Registry was set up.

3. Who decides the forms for registration under Section 23 of the Finance Law?

Under Section 23(3) of the 2002 Act, the Central Government has the power to prescribe forms for registration through rules.

Test yourself

Q1.Under Section 23 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what must be filed with the Central Registrar?

Q2.Who has the power to require registration of transactions that existed before the Registry was established under Section 23 of the 2002 Act?

Q3.Under Section 23 of the Finance Law, who prescribes the fees for filing transactions?

Q4.According to the requirements related to Section 23 of the 2002 Act, how long does a lender have to report that a debt is fully satisfied?

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