No longer current — withdrawn, no replacement on file yet
RBI's own words: “A Master Circular giving gist of circulars/notifications issued up to June 30, 2008” — RBI/2008-2009/13
Source: Reserve Bank of India · RBI/2006-2007/420 · issued 28 May 2007 · ~1 min read
Quick answerRBI mandates SC/RCs to periodically declare NAV of Security Receipts for QIBs, effective immediately from May 28, 2007, ensuring investment value transparency.
The rule, in the simplest words
SC/RC (companies that buy bad loans from banks) must tell QIBs (big investors like banks) the NAV (value of their investment) of Security Receipts (pieces of paper showing ownership in the bad loans) at regular times.
This rule starts right away from May 28, 2007.
SC/RCs must set up a system to figure out and share the NAV so QIBs know what their investment is worth.
Only SC/RCs registered with RBI under the SARFAESI Act (a law for handling bad loans) have to follow this rule.
How it plays out — a real example
A branch operations officer in Indore, Priya, works for a bank that bought Security Receipts from an SC. After May 28, 2007, she starts getting regular NAV updates from the SC, so she can easily check if her bank's investment in those bad loans is still valuable or losing money, helping her decide whether to hold or sell.
What changed
RBI issued guidelines requiring all registered Securitisation Companies/Reconstruction Companies to declare the Net Asset Value of Security Receipts at periodic intervals. This is a new disclosure requirement aimed at informing Qualified Institutional Buyers about their investment value.
What it means for you
Banks and lenders investing in Security Receipts will now receive regular NAV updates, improving transparency and risk assessment. SC/RCs must implement systems to calculate and disclose NAV periodically, increasing operational compliance.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Ensure your SC/RC registers with RBI under SARFAESI Act if not already done.
Set up processes to calculate and declare NAV of Security Receipts at periodic intervals.
Communicate NAV disclosures to all Qualified Institutional Buyers as per guidelines.
Review compliance with the new guidelines effective immediately from May 28, 2007.
Who it affects
All registered Securitisation Companies, All registered Reconstruction Companies, Qualified Institutional Buyers investing in Security Receipts
RBI’s words: “A Master Circular giving gist of circulars/notifications issued up to June 30, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/420
DNBS (PD) CC. No. 6 / SCRC / 10.30.049/ 2006-2007
May 28, 2007
All registered Securitisation Companies/Reconstruction Companies
Dear Sir,
Guidelines on declaration of Net Asset Value of Security Receipts issued by Securitisation
Company/ Reconstruction Company
In order to enable the Qualified Institutional Buyers to know the value of their investment in the Security Receipts issued by the Securitisation Company/Reconstruction Company, it has been decided that the Securitisation Company/Reconstruction Company registered with the Reserve Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should declare Net Asset Value of the Security Receipts issued by it at periodical intervals. Accordingly, broad guidelines on declaration of Net Asset Value on Security Receipts by Securitisation Company/Reconstruction Company are enclosed.
2. These guidelines come into force with immediate effect.
Yours faithfully,
(P.Krishnamurthy)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/420 · issued 28 May 2007. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3557&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.