law: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  7. Issue of security
  
  by raising of receipts or funds by securitisation company or reconstruction
  
  company.- 
  
  1.     
  
    Without
  
  prejudice to the provisions contained in the Companies Act, 1956 (1 of 1956),
  
  the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities
  
  and Exchange Board of India Act, 1992 (15 of 1992), any securitisation company
  
  or reconstruction company, may, after acquisition of any financial asset under
  
  sub-section (1) of section 5, offer security receipts to qualified
  
  institutional buyers (other than by offer to public) for subscription in
  
  accordance with the provisions of those Acts.
  2.     
  
    A
  
  securitisation company or reconstruction company may raise funds from the
  
  qualified institutional buyers by formulating schemes for acquiring financial
  
  assets and shall keep and maintain separate and distinct accounts in respect of
  
  each such scheme for every financial asset acquired out of investments made by
  
  a qualified institutional buyer and ensure that realisations of such financial
  
  asset is held and applied towards redemption of investments and payment of
  
  returns assured on such investments under the relevant scheme.
  3.     
  
    In
  
  the event of non-realisation under sub-section (2) of financial assets, the
  
  qualified institutional buyers of a securitisation company or reconstruction
  
  company, holding security receipts of not less than seventy-five per cent. of
  
  the total value of the security receipts issued by such company, shall be
  
  entitled to call a meeting of all the qualified institutional buyers and every
  
  resolution passed in such meeting shall be binding on the company.
  4.     
  
    The
  
  qualified institutional buyers shall, at a meeting called under sub-section
  
  (3), follow the same procedure, as nearly as possible as is followed at
  
  meetings of the board of directors of the securitisation company or
  
  reconstruction company, as the case may be.