Section 3(3) in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002
(3)The Reserve Bank may, for the purpose of considering the application for registration of a [asset reconstruction company] [Substituted by Act No. 44 of 2016.] to commence or carry on the business of securitisation or asset reconstruction, as the case may be, require to be satisfied, by an inspection of records or books of such [asset reconstruction company] [Substituted by Act No. 44 of 2016.] or otherwise, that the following conditions are fulfilled, namely:(a)that the [asset reconstruction company] [Substituted by Act No. 44 of 2016.] has not incurred losses in any of the three preceding financial years;(b)that such [asset reconstruction company] [Substituted by Act No. 44 of 2016.] has made adequate arrangements for realisation of the financial assets acquired for the purpose of securitisation or asset reconstruction and shall be able to pay periodical returns and redeem on respective due dates on the investments made in the company by the [qualified buyers] [Substituted by Act No. 44 of 2016.] or other persons;(c)that the directors of [asset reconstruction company] [Substituted by Act No. 44 of 2016.] have adequate professional experience in matters related to finance, securitisation and reconstruction;(d)[ * * *] [Omitted 'that the board of directors of such asset reconstruction company does not consist of more than half of its total number of directors who are either nominees of any sponsor or associated in any manner with the sponsor or any of its subsidiaries;' by Act No. 44 of 2016.](e)that any of its directors has not been convicted of any offence involving moral turpitude;(f)[ that a sponsor of an asset reconstruction company is a fit and proper person in accordance with the criteria as may be specified in the guidelines issued by the Reserve Bank for such persons;] [Substituted by Act No. 44 of 2016.](g)that the [asset reconstruction company] [Substituted by Act No. 44 of 2016.] has complied with or is in a position to comply with prudential norms specified by the Reserve Bank;(h)[ that [asset reconstruction company] [Inserted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 (30 of 2004), Section 3 (w.e.f. 11.11.1004).] has complied with one or more conditions specified in the guidelines issued by the Reserve Bank for the said purpose.]
