Issue of security by raising of receipts/funds by Asset Reconstruction Company – RBI notifies AIFs as qualified buyers
RESERVE BANK OF INDIA
NOTIFICATION
Mumbai, the 10th March, 2021
NOTIFICATION UNDER CLAUSE (U) OF SUB-SECTION (1) OF SECTION 2 OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002
Notification DoR. FIN. No. 08/26.03.001/2020-2021.—dated March 10, 2021-In exercise of the powers conferred by sub-section (1) of section 7 read with clause (u) of sub-section (1) of Section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( 54 of 2002), the Reserve Bank of India hereby specifies Category I Alternative Investment Funds (AIFs) set up as trust and registered with Securities and Exchange Board of India under Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, as ‘qualified buyers’, subject to the following conditions:
a. The AIF which has invested in an asset reconstruction company (ARC) shall not invest in the security receipts issued by that ARC;
b. The AIF shall not invest in the security receipts issued on the underlying loans of any of its associate or group company;
c. The AIF shall not invest in the security receipts backed by non-performing assets of banks which hold equity of more than 10% in that AIF.
SAURAV SINHA, Executive Director
[ADVT.-III/4/Exty./570/2020-21]
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- Assessee filing ITR under presumptive tax can’t be faulted for not giving details not mandated
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- Interest liability recognised by journal entries at the close of year, can’t be termed as fictitious – ITAT
- Cash deposits in bank which were immediately transferred to other accounts – addition deleted
