(1) Any 1[asset reconstruction company] registered under section 3 may- (a) act as an agent for any bank or financial institution for the purpose of recovering their dues from the borrower on payment of such fees or charges as may be mutually agreed upon between the parties; (b) act as a manager referred to in clause (c) of sub-section (4) of section 13 on such fee as may be mutually agreed upon between the parties; (c) act as receiver if appointed by any court or tribunal: Provided that no 1[asset reconstruction company] shall act as a manager if acting as such gives rise to any pecuniary liability. (2) Save as otherwise provided in sub-section (1), no 1[asset reconstruction company] which has been granted a certificate of registration under sub-section (4) of section 3, shall commence or carry on, without prior approval of the Reserve Bank, any business other than that of securitisation or asset reconstruction:
Provided that a 1[asset reconstruction company] which is carrying on, on
or before the commencement of this Act, any business other than the business
of securitisation or asset reconstruction or business referred to in
sub-section (1), shall cease to carry on any such business within one year
from the date of commencement of this Act.
Explanation.
For the purposes of this section, "2[asset reconstruction company]'' or "3[asset reconstruction company]'' does not include its subsidiary.
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1. Subs. by Act 44 of 2016, s. 3, for "securitisation company or reconstruction company" (w.e.f. 1-9-2016)
2. Subs. bys. 3,ibid.,for "securitisation company" (w.e.f. 1-9-2016)
Section 3 Registration of asset reconstruction companies
Section 4 Cancellation of certificate of registration
Section 5 Acquisition of rights or interest in financial assets
Section 5A Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases
Section 6 Notice to obligor and discharge of obligation of such obligor
Section 7 Issue of security by raising of receipts or funds by asset reconstruction company
Section 8 Exemption from registration of security receipt
Section 9 Measures for assets reconstruction
Section 10 Other functions of asset reconstruction company
Section 11 Resolution of disputes
Section 12 Power of Reserve Bank to determine policy and issue directions
Section 12A Power of Reserve Bank to call for statements and information
Section 12B Power of Reserve Bank to carry out audit and inspection