CERSAI Rules make mandatory registration of charges of every kind

The Government of India has amended the rules under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011(Referred as principal rules). The amendment to principal rules came into force from the date same were published in the gazette of India   Part II section3 sub-section. (i) (January 22, 2016) .…

Definitions of Micro, Small & Medium Enterprises (MSMEs)

The MSMED Act 2006 classifies Micro, Small & Medium Enterprises (MSMEs) in two categories viz. Manufacturing Enterprises and Service Enterprises. The manufacturing enterprises are those who are engaged in manufacture or production of goods pertaining to any industry listed in first schedule to the industries (Development and Regulation) Act 1951 or an enterprise employing plant…

Why Micro Small enterprises do not get adequate bank finance?

Although, the commercial banks and other financial institutions have been making steady strides to increase their share of credits to MSE sector, but they have certain difficulties in sanctioning limits to SME borrowers.  In an environment of NPA numbers in banking sector alarmingly swelling, banks themselves are under the stress and facing challenge to raise…

Proceedings against large Corporates under IBC

Following the ordinance empowering RBI to lay down the process of initiating steps under the Insolvency and Bankruptcy Code (IBC), an Internal Advisory Committee (IAC) is set up by RBI to oversee the specific steps that are initiated by bankers for resolution of a bad debt. In its first meeting on June 12, 2017, the…

Applicability of Stamp duty when signatories are in different states/abroad

Stamp duty payable on an instrument/document when joint executants are in different state The section 17 of Stamp act 1899 provides that all instruments chargeable to the duty and executed by any person in India shall be stamped before or at the time of execution of the instrument. Section 19A provides that added stamp duty…

How to get Satisfaction of Charge certificate from Registrar of companies?

A company upon payment or satisfaction in full of any charge registered under Chapter VI of companies Act 2013 shall give intimation of satisfaction to the Registrar of Companies. The procedure for applying for the certificate of satisfaction of charges registered under companies act are as under. The company shall approach lender bank/financial institution to issue…