Section 22: Register of Securitisation, Reconstruction and Security Interest Transactions

Section 22 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) provides for a Central Register recording securitisation, reconstruction of financial assets and creation of security interests. It specifies what is entered, permits electronic records and places the register under the Central Registrar's control.

Section 22: Statutory provisions explained

Sub-section (1): Entries in the Central Register

A record called the Central Register must be kept at the head office of the Central Registry. It contains particulars of transactions relating to:

1. Section 22(1)(a) - Securitisation of financial assets: transactions involving acquisition and conversion or pooling of financial assets in the statutory securitisation framework.
2. Section 22(1)(b) - Reconstruction of financial assets: transactions relating to management or recovery of acquired financial assets through the statutory reconstruction framework.
3. Section 22(1)(c) - Creation of security interest: transactions establishing a legally recognised interest or right in property to secure repayment or performance of an obligation.

Sub-section (2): Electronic record-keeping

Despite the requirement in sub-section (1), the Central Registrar may maintain the records wholly or partly on a computer, floppies, diskettes or in another electronic form, subject to prescribed safeguards. These references reflect the statutory drafting; electronic systems are the practical mode of contemporary record-keeping.

Sub-section (3): Legal recognition of electronic entries

Where records are maintained electronically under sub-section (2), any reference in the Act to an entry in the Central Register also refers to an entry maintained on a computer or in another electronic form. An electronic entry is therefore not excluded merely because it is not on paper.

Sub-section (4): Control and management

The Central Register is kept under the control and management of the Central Registrar, the official appointed under Section 21.

Meaning of the key expressions

Central Registry: the statutory registration institution established under Section 20. Central Register: the record maintained under Section 22 within that institution. Security interest: broadly, a right, title or interest in property created in favour of a secured creditor to secure a financial obligation, subject to the precise definition and exclusions in Section 2 of the Act. Asset reconstruction: acquisition and management of financial assets for realisation as regulated by the Act.

How Section 22 fits with filing and searches

Section 22 establishes the record itself. Section 23 addresses filing of particulars; Section 24 deals with modifications; Section 25 concerns satisfaction of security interests; and Section 26 deals with inspection. Related provisions in Sections 26B to 26E govern additional registration and enforcement consequences. Registration does not dispense with compliance with other applicable statutory requirements.

For lenders, borrowers and purchasers, Central Registry searches can assist in checking recorded encumbrances. A search should not be treated as a conclusive guarantee that no other rights or interests exist: appropriate title searches, underlying documents and other statutory registers may also require examination.

Official law and registration resources

Consult India Code for the consolidated SARFAESI Act and applicable rules, e-Gazette of India for notifications and amendments, and the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) for registry-related services and notices. Check current procedural rules, applicable filing categories, fees and access requirements directly before acting.