The Hindu Business Line : Securitisation Bill gets President nod

THE President has given his assent to four Bills, including the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill, 2002 and the Negotiable Instruments (Amendment and Miscellaneous Provisions) Bill, 2002.

The other two bills are the Salaries and Allowances of Officers of Parliament and Leaders of Opposition in Parliament (Second Amendment) Bill, 2002 and the Mysore State Legislature (Delegation of Powers) Repeal Bill, 2002.

The Parliament had passed these Bills during the just-concluded Winter Session, an official statement said here on Tuesday.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, seeks to deal with three distinct actions in respect of financial asset held by banks and financial institutions in the form of securitisation of financial assets, setting up of asset reconstruction companies and enforcement of security interest.

It also replaces the Ordinance first promulgated on June 21, 2002 and later re-promulgated on August 21, 2002. It has already come into force with effect from June 21, 2002. This Act shall have over riding power over all other laws.

The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002, seeks to provide stringent punishment for bouncing of cheques, which will be two years besides provision for a summary trial by court to hand down speedy, time-bound and deterrent punishment to the culprits.

The trial in this regard will be on a day-to-day basis. Offences relating to bouncing of cheques will be compoundable. To give effect to this, the Information Technology Act, 2000 has been amended. This will come into force from a date to be notified by the Government.

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Securitisation Bill gets President nod