What changed
This is a master circular consolidating all prior directions issued to SCs/RCs up to June 30, 2012, into a single reference document. It does not introduce new rules but compiles existing ones for easier compliance.
What it means for you
SCs/RCs must ensure they meet the minimum owned fund threshold (15% of total financial assets or Rs.100 crore, whichever is lower) and maintain it until asset realisation. They must also submit quarterly statements (SCRC1/SCRC2) within 15 days of quarter-end and annual audited balance sheets within one month of the AGM. Non-compliance could affect registration or operations.
What you must do
- Verify your SC/RC's owned fund meets the 15% or Rs.100 crore minimum and is maintained until asset realisation.
- Submit quarterly SCRC1 and SCRC2 statements within 15 days of each quarter-end.
- File audited balance sheet with Directors' and Auditors' reports within one month of AGM.
- Ensure business commences within 6 months of registration (extendable up to 12 months with RBI approval).
Who it affects
Securitisation Companies (SCs), Reconstruction Companies (RCs), RBI's Department of Non-Banking Supervision
What is the minimum owned fund requirement for an SC/RC?
The minimum owned fund must be at least 15% of the total financial assets acquired or to be acquired, or Rs.100 crore, whichever is lower. This must be maintained until assets are realised and security receipts redeemed.
How soon must an SC/RC start business after getting a Certificate of Registration?
Business must commence within six months of the certificate date. RBI may grant an extension, but total time cannot exceed 12 months from the date of registration.
What quarterly reports are required and when are they due?
SCs/RCs must submit SCRC1 and SCRC2 statements on assets acquired, securitised, and reconstructed within 15 days of the end of each quarter.