Which of the following statements is correct under Section 3 of the SARFAESI Act, 2002?
Under section 3 no asset reconstruction company may "commence or carry on the business of asset reconstruction" without obtaining a certificate of registration. The…
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Which of the following statements is correct under Section 3 of the SARFAESI Act, 2002?
Answer and explanation
Correct answer B
Under section 3 no asset reconstruction company may "commence or carry on the business of asset reconstruction" without obtaining a certificate of registration. The certificate is granted by the Reserve Bank, not the Central Government or a Debts Recovery Tribunal, and incorporation under the Companies Act does not make registration optional.