Legal Aspects of Non-Performing Assets

LEGAL ASPECTS OF NON-PERFORMING ASSETS KNOWHOW FOR MANUFACTURE AND TECHNIQUES TO ELIMINATE NON-PERFORMING ASSETS BY PROCESS OF SECURITISATION Securitisation The impression of securitisation has been adopted more recently from the American financial trunk and has been described as processing of acquiring financial asset and packaging the same for investments by several investors. The term securitisation has not been defined as such, but has been used in trustworthy rules, regulations and notifications. In the recently enacted the Securitisation and Reconstruction of Financial Assets and Enforcement of Security fire propel, 2002 (for short the Securitisation Act) the term securitisation has been defined as erudition of financial assets by any securitisation company or reconstructive memory company from any originator, whether by raising of funds by such securitisation company or reconstruction company from dependant institutional buyers by issue of security receipts representing undivided fires in such financial assets or otherwise.

The Securitisation Act, 2002 The Securitisation Act has been enacted mainly for tackling the growing menace non-performing assets by securitisation of assets by trade to ARC, which is to issue of security receipts to the investor and for enforcement of security interest by banks and financial institutions. Initially, many were delighted to find that the securitisation process as a class has come to stay in the Indian legal system, and the problem of the non-performing assets of banks and financial institution would stand headstrong since the banks and financial institutions would be able to enforce its security interest without intervention of the courts. The quantum of non performing assets has been growing by leaps and bounds and has been playacting havoc on the Indian financial system since as at the end of the year 2001 the total amount of groovy NPAs stood at Rs.83,500/- crores. After enactment of the... If you want to get a full essay, order it on our website: Orderessay

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