Section 4(1) in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002
(1)The Reserve Bank may cancel a certificate of registration granted to a [asset reconstruction company] [Substituted by Act No. 44 of 2016.], if such company(a)ceases to carry on the business of securitisation or asset reconstruction; or(b)ceases to receive or hold any investment from a [qualified buyer] [Substituted by Act No. 44 of 2016.]; or(c)has failed to comply with any conditions subject to which the certificate of registration has been granted to it; or(d)at any time fails to fulfil any of the conditions referred to in clauses (a) to (g) of sub-section (3) of section 3; or(e)fails to(i)comply with any direction issued by the Reserve Bank under the provisions of this Act; or(ii)maintain accounts in accordance with the requirements of any law or any direction or order issued by the Reserve Bank under the provisions of this Act; or(iii)submit or offer for inspection its books of account or other relevant documents when so demanded by the Reserve Bank; or(iv)obtain prior approval of the Reserve Bank required under sub-section (6) of section 3:Provided that before cancelling a certificate of registration on the ground that the [asset reconstruction company] [Substituted by Act No. 44 of 2016.] has failed to comply with the provisions of clause (c) or has failed to fulfil any of the conditions referred to in clause (d) or sub-clause (iv) of clause (e), the Reserve Bank, unless it is of the opinion that the delay in cancelling the certificate of registration granted under sub-section (4) of section 3 shall be prejudicial to the public interest or the interests of the investors or the [asset reconstruction company] [Substituted by Act No. 44 of 2016.], shall give an opportunity to such company on such terms as the Reserve Bank may specify for taking necessary steps to comply with such provisions or fulfilment of such conditions.
