Section 12(1) in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002
(1)If the Reserve Bank is satisfied that in the public interest or to regulate financial system of the country to its advantage or to prevent the affairs of any [asset reconstruction company] [Substituted by Act No. 44 of 2016.] from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such [asset reconstruction company] [Substituted by Act No. 44 of 2016.] it is necessary or expedient so to do, it may determine the policy and give directions to all or any [asset reconstruction company] [Substituted by Act No. 44 of 2016.] in matters relating to income recognition, accounting standards, making provisions for bad and doubtful debts, capital adequacy based on risk weights for assets and also relating to deployment of funds by the [asset reconstruction company] [Substituted by Act No. 44 of 2016.] as the case may be, and such company shall be bound to follow the policy so determined and the directions so issued.
