Multiple choice

After application of the SARFAESI Act, the existing companies

  1. are automatically deemed to be registered

  2. are required to stop functioning

  3. do not require registration

  4. have to get registered within six months from the commencement of the Act
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A securitisation company or 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 sub-section 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.

Keep practicing — related questions