Which of these is a measure for asset reconstruction listed in section 9(1) of the SARFAESI Act, 2002?
Question and options
Which of these is a measure for asset reconstruction listed in section 9(1) of the SARFAESI Act, 2002?
Change in, or takeover of, the management of the borrower's business
Presentation of a winding-up petition against the borrower company
Attachment of the borrower's assets that are not held as security
Merger of the borrower's business with the asset reconstruction company
Answer and explanation
Section 9(1)(a) of the SARFAESI Act lists proper management of the borrower's business by change in, or takeover of, its management as a measure for asset reconstruction. The section also lists sale or lease of the business, rescheduling, enforcement of security interest, settlement, taking possession of secured assets and conversion of debt into shares, but not attachment of unsecured assets, merger or winding up.
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