Procedure for Registration of Charge in Banking Securities

The procedure for registration of charge in banking securities varies depending on the country. In India, the procedure is as follows:

  1. The charge document must be in writing and signed by the borrower and the lender.
  2. The charge document must be stamped with the appropriate stamp duty.
  3. The charge document must be filed with the Registrar of Companies (ROC).
  4. The ROC will issue a certificate of registration of the charge.

The charge document must be filed with the ROC within 30 days of its creation. If the charge document is not filed within the 30-day period, the charge may be invalid.

The following are the documents that need to be filed with the ROC for registration of a charge in banking securities:

  • Charge document
  • Stamp duty receipt
  • Power of attorney, if applicable
  • Proof of identity of the borrower and lender

The ROC will charge a fee for registration of the charge. The fee varies depending on the amount of the debt that is being secured.

MCQs on Procedure for Registration of Charge in Banking Securities

  1. What is the procedure for registration of charge in banking securities?
    • The charge document must be in writing and signed by the borrower and the lender.
    • The charge document must be stamped with the appropriate stamp duty.
    • The charge document must be filed with the Registrar of Companies (ROC).
    • All of the above.

The answer is (d). The procedure for registration of charge in banking securities is that the charge document must be in writing and signed by the borrower and the lender, the charge document must be stamped with the appropriate stamp duty, the charge document must be filed with the ROC, and the ROC will issue a certificate of registration of the charge.

  1. What are the documents that need to be filed with the ROC for registration of a charge in banking securities?
    • Charge document
    • Stamp duty receipt
    • Power of attorney, if applicable
    • Proof of identity of the borrower and lender

The answer is (d). The documents that need to be filed with the ROC for registration of a charge in banking securities are charge document, stamp duty receipt, power of attorney, if applicable, and proof of identity of the borrower and lender.

  1. What is the fee charged by the ROC for registration of a charge in banking securities?
    • The fee varies depending on the amount of the debt that is being secured.
    • The fee is fixed at INR 1000.
    • The fee is waived if the charge is for a loan of less than INR 100000.
    • The fee is not applicable for charges created by banks.

The answer is (a). The fee charged by the ROC for registration of a charge in banking securities varies depending on the amount of the debt that is being secured. The fee is calculated on a sliding scale, with the lowest fee being charged for charges created by banks.