The Institute of Chartered Accountants of India (ICAI) on Friday notified the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for the CA Final Examination (New) May 2022.
“This is to bring to the notice of the students appearing for May 2022 Final Examination (New) and onwards, that SARFAESI Act, 2002 has been included in the syllabus of Paper 6D: economic Laws,” the ICAI announced.
The objective of Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is the efficient or rapid recovery of non-performing assets (NPAs) of the banks and FIs, allows banks and financial institutions to auction properties (say, commercial/residential) when the borrower fails to repay their loans.
The SARFAESI Act also provides for the sale of financial assets by banks and financial institutions to Asset Reconstruction Companies (ARCs). The financial assets can be sold to ARCs in accordance with the guidelines and directions issued by the RBI.
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 were circulated to regulate securitization and reconstruction of financial assets, enforcement of the security interest for and matters connected therewith or incidental thereto.
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