SARFAESI Act 2002: Preamble

The Preamble of the SARFAESI Act 2002 sets out the following objectives of the Act:

  • To regulate securitisation and reconstruction of financial assets.
  • To enforce security interest.
  • To provide for a Central database of security interests created on property rights.
  • To provide for matters connected therewith or incidental thereto.

MCQs

  1. What is the full form of SARFAESI?
    • Answer: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act
  2. When was the SARFAESI Act enacted?
    • Answer: 2002
  3. Who are the stakeholders of the SARFAESI Act?
    • Answer: Banks, financial institutions, borrowers, and asset reconstruction companies
  4. What are the provisions of the SARFAESI Act for the enforcement of security interest?
    • Answer: The SARFAESI Act allows banks and financial institutions to take possession of the secured assets of a defaulting borrower without the intervention of the courts.
  5. What is the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI)?
    • Answer: CERSAI is a central database that maintains records of all security interests created on property rights in India.

Answers

  1. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act
  2. 2002
  3. Banks, financial institutions, borrowers, and asset reconstruction companies
  4. The SARFAESI Act allows banks and financial institutions to take possession of the secured assets of a defaulting borrower without the intervention of the courts.
  5. CERSAI is a central database that maintains records of all security interests created on property rights in India.