Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (Sarfesi Act)

Two SN Gupta partners argue that the Securitisation Act is flawed without an effective Central Registry, which has still not been created almost seven years since first envisaged.

The so-called Sarfesi Act is arguably one of the most important developments in Indian banking sector reforms with respect to the non-performing secured assets.

However, certain provisions of Sarfesi seem to be a deterrent to foreign lenders providing finance to Indian borrowers, which in turn affects genuine Indian companies also from raising low-cost international finance.