law: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  12. Power of Reserve
  
  Bank to determine policy and issue directions.- 
  1.     
  
    If
  
  the Reserve Bank is satisfied that in the public interest or to regulate
  
  financial system of the country to its advantage or to prevent the affairs of
  
  any securitisation company or reconstruction company from being conducted in a
  
  manner detrimental to the interest of investors or in any manner prejudicial to
  
  the interest of such securitisation company or reconstruction companay, it is
  
  necessary or expedient so to do, it may determine the policy and give
  
  directions to all or any securitisation company or reconstruction company in
  
  matters relating to income recognition, accounting standards, making provisions
  
  for bad and doubtful debts, capital adequacy based on risk weights for assets and
  
  also relating to deployment of funds by the securitisation company or
  
  reconstruction company, as the case may be, and such company shall be bound to
  
  follow the policy so determined and the directions so issued.
  2.     
  
    Without
  
  prejudice to the generality of the power vested under sub-section (1), the
  
  Reserve Bank may give directions to any securitisation company or
  
  reconstruction company generally or to a class of securitisation companies or
  
  reconstruction companies or to any securitisation company or reconstruction
  
  company in particular as to-
  a.      the type of financial
  
  asset of a bank or financial institution which can be acquired and procedure
  
  for acquisition of such assets and valuation thereof;
  b.     the aggregate value
  
  of financial assets which may be acquired by any securitisation company or
  
  reconstruction company.