As per Sec.38(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002, the Central can make rules for carrying out the provisions of the Act.
Some ten aspects are provided in (a) to (g) clauses on which the rules are made. So in the exercise of those powers the Security Interest Rules are made. Some provisions like S.13(4), (10), (12) also require the procedure to get the full effect of it. Hence these rules.
There are 13 rules. The important ones are as follows:-
Rule 2:Definitions-In this the authorised officer is defined. In this the authorised officer is defined. Demand notice is defined. Approved valuer is defined.
Rule3:Demand Notice:This rule prescribes how to issue/deliver a demand notice. The provisions are very much similar to CPC. Sending of notice in case of individuals, body corporate etc is detailed.
Rule 3A: Reply to representation of borrower-In the Act, S.13(3A) says about the reply to be given to the representation of borrower. Likewise, here also it is stated. Sub rule(b) says that the secured creditor can modify the notice if necessary.
Rule 4:It says about the procedure after issue of notice. The procedure to be followed as per S.13(4) of the Act is detailed.
Rule 5:It deals with valuation.
Rule 6: It deals with sale of movables.
Rule 7: Issuance of sale certificate
Rule 8&9: Sale of immovable secured assets. Time, delivery of possession etc are detailed.