| The review is being undertaken in the light of latest developments such as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi) 2002. |
| The working group is headed by AK Khandelwal, executive director, Bank of Baroda. |
| On the basis of the group's report, the IBA proposes to make a comprehensive request to the government through the Reserve Bank of India for amendments to the various laws affecting secured transactions law in India. |
| The group has sent out a comprehensive questionnaire on review of laws relating to "creation of security interest, perfection and enforcement" to banks. |
| It wants to know the difficulties being faced by banks in creation of security interest over moveable properties and whether it is necessary to have an act codifying the law relating to moveables or it would suffice to amend the existing laws suitably. |
| The group is seeking feedback on the necessity of amending the Sarfaesi Act or any other law to provide for collection of debts without intervention of the court. |
| It wants to know the provisions that are necessary so that hypothecation as a security interest can be full-fledged. |
| At present, when a bank takes hypothecation against the inventory there is no mechanism to verify and prevent claims from suppliers on the basis of title retention. |
| Hence, the group wants to know how this issue can be tackled. It has invited suggestions on the laws relating to floating charges and the types of property banks will prefer to have such provisions applied to. |
| Posers pertaining to the creation of security interest in the Intellectual Property Rights legislation and the rights and obligations as regards successive (first and second) charge holders have been raised. |
Top Section
Explore Business Standard