Section 39 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Summary
- Several specific sections of this Act do not take effect immediately when the law is passed.
- These delayed sections are all related to the creation and operation of the Central Registry.
- The rules regarding the Central Registrar, the register of transactions, the filing of transactions, and the penalties for not filing only apply after the Central Registry is actually set up.
- This ensures nobody is punished for failing to register a transaction before the physical or digital registry exists.
Practical examples
FAQ
1. Why are some parts of the Act delayed by Section 39?
They are delayed because they involve filing documents with or managing the Central Registry. It is impossible to follow these rules until the Registry is actually created.
2. Which specific sections are put on hold until the Central Registry is set up?
Sub-sections (2), (3) and (4) of Section 20, and Sections 21, 22, 23, 24, 25, 26, and 27.
3. What happens once the Central Registry is set up?
All the listed sections instantly apply, meaning banks must start filing their transactions and the public can start inspecting the register.
Test yourself
Q1.According to Section 39 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what event must happen before Sections 21 through 27 apply?
Q2.Which of the following is one of the delayed sections listed in Section 39 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and what does it do?
Q3.Section 39 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 delays the application of Section 23. What is the main requirement of Section 23?
Q4.How does Section 39 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 handle the penalties under Section 27?