NBFCs and HFCs Now Qualified Buyers Under SARFAESI Act With Restrictions on Defaulting Promoters' Asset Access

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....SEBI issued notification specifying NBFCs and HFCs regulated by RBI as qualified buyers under SARFAESI Act, 2002. The notification supersedes previous directive from March 2008. Key conditions mandate that defaulting promoters or related parties cannot access secured assets through security receipts, either directly or indirectly. NBFCs and HFCs must also comply with additional conditions as prescribed by RBI. This notification expands the scope of qualified buyers while implementing safeguards against potential misuse by defaulters, strengthening the securitization and asset reconstruction framework under SARFAESI Act.....