➡ Definitions of SARFAESI ACT, 2002 ➡ All Definitions are given under Section 2 of SARFAESI ACT, 20

➡ Definitions of SARFAESI ACT, 2002 ➡ All Definitions are given under Section 2 of SARFAESI ACT, 2002. ✅ Preamble ➡ Its the purpose of the Act. Like Preamble of SARFAESI Act is an act to regulate securitization and reconstruction of financial assets. ✅ Appellate Authority ➡ Any person aggrieved by the order DRT can file an appeal to this Authority which are constituted by Central Government. ✅ Asset Reconstruction ➡ Acquisition of any right or interest, of any bank or FI, by any securitization/reconstruction for realization of financial assistance. ✅ Bank V ➡ All Banking companies + Nationalized Banks + SBI (its subsidiaries) + Co-operative Banks. Board SEBI (Securities Exchange Board of India), 1992 Borrower Any person who has – ✅ point 1 ➡ Granted financial assistance ✅ point 2 ➡ Given any guarantee ✅ point 1 ➡ Created mortgage, pledge, security, etc. ✅ Central Registry ➡ Means the registering office, set up or caused by CG for registering of all the transactions. Provides maintaining credit information for the lenders. ✅ Debt Recovery Tribunal ➡ To deal with the cases of recovery of debts above Rs. 10 Lakhs due to Banks and FI’s Financial Assistance Granting Loan + Subscription of Debentures or Bonds + Gives Guarantee + Issues L, by any Bank or FI Default ➡ NPA’s ✅ Hypothecation ➡ Charge in moveable property without moveable property. ✅ Originator ➡ Owner of the Financial Assets that is required by the securitization/ reconstruction company for the purpose of Asset Reconstruction. ✅ Obligor ➡ A person liable to pay to the originator. ✅ Qualified Institutional Buyer ➡ FI + Insurance Company + Bank + State Financial Corporation + State Industrial Development Corporation + Trustee + AMC, making investment on behalf of mutual fund or PF, etc ✅ Securitization ✅ point 1 ➡ Acquisition of financial asset by Securitization / Reconstruction Company from originator. Such acquisition may be raising of funds by QIBs. ✅ point 2 ➡ RBI is the regulatory authority ✅ point 3 ➡ Minimum capital requirement = 2 crore ✅ point 4 ➡ Minimum CAR = 15% of total asset acquired or 100 crore whichever is less. ✅ Secured Creditor ➡ Any bank or financial institution or any consortium or group of banks in whose favour the security interest is created by the borrower for due repayment. ✅ Sponsor ➡ Sponsor is an entity holding not les than 10 % of the paid up equity capital or securitization or reconstruction company.