Issue of security by raising of receipts/funds by Asset Reconstruction Company – RBI notifies AIFs as qualified buyers

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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• ITAT allows exemption of Rs. 25 lakhs u/s 10(10A) to non-government employees
• PCIT has revisionary jurisdiction u/s 263 over the cases passed by the NFAC or the JAO
• Appellate court interfering with MACT finding must undertake reappreciation of evidence
• When delay is not huge & involves huge monetary liability, lenient approach to be taken