What changed
RBI partially modified its earlier circular of April 25, 2007, requiring all registered SCs/RCs to now include Owned Funds as item 1 in their quarterly SCRC1 statements. Additionally, they must submit audited balance sheets along with Directors and Auditors reports within one month of the AGM where results are adopted, starting with the March 31, 2008 balance sheet.
What it means for you
This tightens reporting discipline for securitisation and reconstruction companies, ensuring RBI gets timely, audited financials and clearer capital position data. Banks dealing with SCs/RCs can expect more reliable owned fund disclosures, aiding risk assessment and regulatory compliance.
What you must do
- Update internal reporting templates to include Owned Funds as item 1 in quarterly SCRC1 returns.
- Ensure audited balance sheets with Directors and Auditors reports are filed within one month of AGM, starting from FY2008.
- Coordinate with compliance teams to align submission timelines with AGM schedules.
- Review existing SC/RC counterparty data for adherence to these new disclosure norms.
Who it affects
All registered Securitisation Companies (SCs), All registered Reconstruction Companies (RCs), Banks and financial institutions dealing with SCs/RCs
What is the deadline for submitting the audited balance sheet under this circular?
SCs/RCs must submit the audited balance sheet along with Directors and Auditors reports within one month from the date of the Annual General Body Meeting where the audited results are adopted, starting with the balance sheet as on March 31, 2008.
Does this circular replace the earlier April 25, 2007 circular?
No, it partially modifies the earlier circular. The key change is that Owned Funds must now be reported as item 1 in the quarterly SCRC1 statement, in addition to the existing requirements.