It is a company registered under the company act 2013 for the purpose of securitization & it also requires a registration from RBI as per SARFAESI act under section 3. Asset Reconstruction Company is in the business of buying the bad loan from the bank. Asset reconstruction company is a specialized financial institution that buys the bad loan, NPAs from banks & financial institution so that to clean up their balance sheet. It takes over the loan and advances from the bank and financial institution for recovery, so it acts as a recovery agent for the banks also.
On acquisition of financial assets the securitization or reconstruction company become the owner of the financial asset and step into the shoes of the lender bank or FIs.
Asset Reconstruction Company, existing on the commencement of this Act, shall make an application for registration to the Reserve Bank before the expiry of six months from such commencement and notwithstanding anything contained in this subsection may continue to carry on the business of securitisation or asset reconstruction until a certificate of registration is granted to it or, as the case may be, rejection of application for registration is communicated to it.
Procedure for Registration of Assets Reconstruction Company
(1) No asset reconstruction company shall commence or carry on the business of securitisation or asset reconstruction without
(a) Obtaining a certificate of registration granted under this section; and
(b) Having net owned fund of not less than 2 crore rupees or such other higher amount as the Reserve Bank, May, by notified.
(2) Every asset reconstruction company shall make an application for registration to the Reserve Bank in such form and manner as it may specify.
(3) The Reserve Bank may, for the purpose of considering the application for registration of a asset reconstruction company to commence or carry on the business of securitisation or asset reconstruction, as the case may be, require to be satisfied, by an inspection of records or books of such asset reconstruction company, or otherwise, that the following conditions are fulfilled, namely:
(a) That the asset reconstruction company has not incurred losses in any of the three preceding financial years;
(b) That such asset reconstruction company has made adequate arrangements for the realization of the financial assets acquired for the purpose of securitisation or asset reconstruction and shall be able to pay periodical returns and redeem on respective due dates on the investments made in the company by the qualified buyers or other persons;
(c) That the directors of asset Reconstruction Company have adequate professional experience in matters related to finance, securitisation and reconstruction;
(d) That any of its directors has not been convicted of any offence involving moral turpitude;
(e) That a sponsor of an asset reconstruction company is a fit and proper person in accordance with the criteria as may be specified in the guidelines issued by the Reserve Bank for such persons;
(f) That asset reconstruction company has complied with or is in a position to comply with prudential norms specified by the Reserve Bank;
(h) That asset reconstruction company has complied with one or more conditions specified in the guidelines issued by the Reserve Bank for the said purpose.
(4) The Reserve Bank may, after being satisfied that the conditions specified in sub-section (3) are fulfilled, grant a certificate of registration to the asset reconstruction company to commence or carry on the business of securitisation or asset reconstruction, subject to such conditions, which it may consider, fit to impose.
(5) The Reserve Bank may reject the application made under sub-section (2) if it is satisfied that the conditions specified in sub-section (3) are not fulfilled
(6) Every asset reconstruction company shall obtain prior approval of the Reserve Bank for any substantial change in its management [including the appointment of any director on the board of directors of the asset reconstruction company or managing director or chief executive officer thereof] or change of location of its registered office or change in its name.
Cancellation of Certificate of Registration For an Asset Reconstruction Company
(1) The Reserve Bank may cancel a certificate of registration granted to an asset reconstruction company if such company
(a) Ceases to carry on the business of securitization or asset reconstruction; or
(b) Ceases to receive or hold any investment from a qualified buyer; or
(c) Has failed to comply with any conditions subject to which the certificate of registration has been granted to it; or
I. comply with any direction issued by the Reserve Bank under the provisions of this Act; or
II. Maintain accounts in accordance with the requirements of any law or any direction or order issued by the Reserve Bank under the provisions of this Act; or
III. Submit or offer for inspection its books of account or other relevant documents when so demanded by the Reserve Bank; or
IV. Obtain prior approval of the Reserve Bank required under sub-section (6) of section 3: Provided that before cancelling a certificate of registration on the ground that the asset reconstruction company has failed to comply with the provisions of clause (c) or has failed to fulfil any of the conditions referred to in clause (d) or sub-clause (iv) of clause (e), the Reserve Bank, unless it is of the opinion that the delay in canceling the certificate of registration granted under sub-section (4) of section 3 shall be prejudicial to the public interest or the interests of the investors or the asset reconstruction company, shall give an opportunity to such company on such terms as the Reserve Bank may specify for taking necessary steps to comply with such provisions or fulfillment of such conditions.
(2) An asset reconstruction company aggrieved by the order of cancellation of the certificate of registration may prefer an appeal, within a period of thirty days from the date on which [such order of cancellation] is communicated to it, to the Central Government
Provided that before rejecting an appeal such company shall be given a reasonable opportunity of being heard.
(3) An asset reconstruction company, which is holding investments of [qualified buyers] and whose application for grant of certificate of registration has been rejected or certificate of registration has been canceled shall, notwithstanding such rejection or cancellation be deemed to be a asset reconstruction company until it repays the entire investments held by it (together with interest, if any) within such period as the Reserve Bank may direct
Document required for registration
Certified copy of up to date MOA & AOA of the company.
Certified copy of the certificate of incorporation.
Board resolution to the effect the company has not accepted any deposit.
None of the directors are disqualified
All information about the sponsor.
All information about management.
A certified copy of auditor certificate.
Last 3 year audited balance sheet along with director and auditor report.
Statement of the owned fund.
Information about the related party.
How to get Assets Reconstruction Company Registration?
Connect With Corpseed
Connect with the team corpseed to discuss specific requirements for your business at IVR: +91 7558 640 644 or firstname.lastname@example.org. It takes 20-25 minutes to discuss requirement.
Once you discuss the requirement, we will align a dedicated Account managers are here to help understand your business and provide best solutions and assist you with the entire process.
Real Time Update
Use our platform to track progress of application and many more. Always know what is going on with your application, what is in progress, and what is done.
Once job is completed, you will receive documents directly to your email ID and at your doorstep along with 30 days payback guarantee incase not satisfied with the services.
At Corpseed, we are committed to offer our services to the entrepreneurs and businesses as a very cost-effective proposition. We believe that a customer is always right and the focus of any business activity should be to serve the customer with utmost loyalty. All our services come with SLAs (Service Level Agreements) for on-time service delivery and money back guarantee to ensure high level of customer satisfaction.
At Corpseed, our valued customers are always kept in the loop as far as service delivery timeline is concerned and we inform our customers every time a milestone is achieved during each stage of service request processing. But we also believe that we may come across a customer who is not satisfied with our efforts. For that we have a very responsive Customer Care Department which work 24x7 to attend to and solve customer complaints. We also have a money back guarantee for those, who want their service charges to be refunded.
At Corpseed, We believe it is our responsibility to protect our customer information from unauthorized access. We have put systems and processes in place to make sure that the customer information is safe with us during its storage and transfer between in house and third party servers. We continuously test our systems and processes for security breach and vulnerabilities are identified and fixed at a regular basis.
If a customer is not satisfied with the service we provided and if he contacts our customer care helpline and files a formal complaint within 15 days of service delivery date, Corpseed would refund the entire or partial amount of Professional Fee charged for that particular service.
If a customer is having issues with our service delivery process, he has various alternatives available at his disposal to register his grievance with us. He can either email his complaint at email@example.com or he can call our 24x7 Customer Care Helpline. Also, any customer is always welcome to visit our office to lodge a complaint with the senior management.
A customer can buy our services directly from our online platform, for which he need to make online payment. Once he clicks on "Apply Now", a new window will open, a customer is required to submit the information in the respective fields and click "Make Payment". A unique ticket number will be auto generated, the customer need to quote this number as reference for any enquiry regarding his service request.
All the monetary transactions performed on Corpseed online platform are secured with SSL System Protocol. We encrypt the customer information such as credit card and bank account details, before these are transmitted anywhere. We adhere to PCI DSS for data security standards for payment processing.
Microfinance is the financial service that provides access to various financial services such as credit, savings, micro-insurance, remittances, leasing to low-income individuals including consumers anRead More
I would like to thank for professionalism and efficiency. Your assistance and sound advice has allowed me to compute my tax bill in efficient and prompt manner.
Sun Line Communications Systems
What I liked most is the reporting method and the proper communication by CORPSEED team & delivery of services on time.
CEO and Principal Consultant at Advance Innovation Group
We are very pleased with the quality of service your company provides. We sincerely appreciate your work and the way you conduct business.
Founder and CEO at Skill Development Council of India
I have found CORPSEED to be quietly dedicated efficient, providing good value for services relating to company formation in Singapore!
CEO - ByKie
"I just experienced possibly the very best customer service provided by CORPSEED as they provided point to point details of their services."
AVP Services at Liqvid
"I heard about CORPSEED through a friend and I came to know that they are providing service of AYUSH and they assisted me for product and I am very about it."
"Thanks for the prompt response to my request, I really appreciate it. Moreover, your service charges on company formation are reasonable enough for new start-up company like us."
Samarpan Herbs Life
"We are very pleased with the service and professionalism provided by CORPSEED. In addition to registration, accounting and tax services you have assisted us with advice to better operate our Us business."
Founder - Mittre India
"Really happy with the services provided by CORPSEED as they not only deliver the product on time but also suggest other innovative services which will give add on to your business."