CERSAI - CENTRAL REGISTRY OF SECURITISATION ASSET RECONSTRUCTION ANDSECURITY INTEREST OF INDIA

The Central Registry is to be operated and maintained by a Government Company licensed under Section 25 of the Companies Act, 1956 which will function under the superintendence and direction of the Central Registrar appointed by the Central Government. There is a fee for each registration which has to be paid at the time of registration. At present the fee has to be paid upfront on a monthly basis for the registrations that will be done in a month. To take care of the fluctuations in the number of monthly transactions it is proposed that each institution should deposit an advance amount to CERSAI equal to registration charges for registrations done over a period of forty five days time. The fees payable by an institution will be adjusted against the advance payment account on a monthly basis. The advance payment to the Central Registry is to be made through RTGS to the following account.

Bank : Bank of Baroda

Branch: Parliament Street, New Delhi

Account Name: CENTRAL REGISTRY OF SECURITISATION ASSET RECONSTRUCTION AND SECURITY INTEREST OF INDIA (CERSAI)

Account No.: 05860200001270

IFS Code: BARB0PARLIA (5th digit should be read as ZERO)

Branch Code: PARLIA

The object of the Registration system is to compile data relating to secured transactions which can be searched by any person on payment of fees prescribed. The right to enforce security under section 13 of the SARFAESI Act, is not linked to such registration. Hence, such enforcement can be done even if there is no registration. For the present, banks and financial institutions will be required to file only information in relation to mortgage by deposit of title deeds with the Registry.

Registration of security interest with Central Registry:

The SARFAESI Act provides for setting up of a Central Registry. Section 23 of the Act interalia requires every secured creditor to register within 30 days after the date of creation of security interest before the Central Registrar the particulars of creation of security. Particulars of every

modification or satisfaction of the security interest are also to be reported to the Central Registry. As regards securities already created and in existence Bank can proceed under Section 13 of the Act even if the security interest is not registered with Central Registry. Please note that any delay in reporting such particulars to the Central Registry will attract fine, which may extend up to Rs.5000/- per day. Filing of these particulars will be in addition to registration of charges with Registrar of Companies.