JKJ 2020 (4) J-3

Brief Overview of Securitization And Reconstruction of Financial Assets And Enforcement of Security Interest (SARFAESI) Act, 2002

By:- Mohd. Latif Malik, Advocate

Since the financial sector always plays a very important role in the progress of a nation and the recovery of loans was very slow in India and our existing legal framework relating to commercial transaction is not at par with the legal framework of  other  developing  countries  and  in  order  to  reform  the  financial  and  banking sectors, the Govt. of India two expert committees under the Chairmanship of M. Narasimham (an Ex-RBI Governor) which are widely credited for spearheading the financial sector reform in India. The first Narasimham Committee (Committee on the Financial System-CFS) was appointed by Manmohan Singh as India’s Finance Minister on 14th of August 1991 and the second committee (Committee on Banking Sector Reforms) was appointed by P. Chidambaram as Finance Minister in Decem- ber, 1997. The first Committee (subsequently known as Narasimham Committee-I) submitted its report to the Finance Minister in November, 1991 which was tabled in Parliament on 17th December, 1991.