Multiple choice

If a securitisation company fails to comply with RBI guidelines, under SARFAESI Act, who can impose penalties and up to what extent?

  1. RBI, fine up to Rs. 5 lac and if default continues, Rs. 10000 per day

  2. SEBI, fine up to Rs. 5 lac

  3. RBI, fine up to Rs. 1 lac

  4. SEBI, fine up to Rs. 5 lac and if default continues, Rs. 10000 per day
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A Correct answer
Explanation

If any securitisation company or reconstruction company fails to comply with any direction issued by the Reserve Bank under Section 12, such company and every officer of the company who is in default, shall be punishable with fine which may extend to Rs. 5 lac rupees. In the case of a continuing offence, with an additional fine which may extend to Rs. 10 thousand for every day during which the default continues.

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