ASREC (India) Ltd. Mumbai (India)

Business overview

ASREC (India) Limited, a Public Limited Company incorporated under the Companies Act 1956 has been granted certificate of registration by RBI on October 11, 2004 to carry out activities under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The Company acquires Non Performing Assets (NPAs) from the Banks / Financial Institutions at mutually agreed prices with the objective is to maximise the returns through innovative resolutions strategies. ASREC positions itself as the multi lender ARC in the public sector aiming to earn the confidence of the financial system in the effective resolution of NPAs by operating in transparent manner with flexibility of the private sector. As the financial sector is moving in the direction of becoming more competitive, prudent and stakeholder centric, it has provided an opportunity for it to eliminate Non Performing Assets through the instruments of ARCs. Hence, the Sponsors of ASREC decided to float ASREC (India) Limited for this purpose. ASREC (India) Limited, a Public Limited Company incorporated under the Companies Act 1956 has been granted certificate of registration by RBI on October 11, 2004 to carry out activities under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. The Company's Registered Office is at Solitaire Coporate Park, Bldg No. 2, Unit No.201-202A & 200-202B Gr Floor, Andheri Ghatkopar Link Rd., Chakala, Andheri (East), Mumbai 400093. The Company has an Authorized Equity Capital of Rs.125 crores and the Paid Up Equity Capital of Rs.98 crores. The Company acquires Non Performing Assets (NPAs) from the Banks / Financial Institutions at mutually agreed prices with the objective is to maximise the returns through innovative resolutions strategies. "Asset Reconstruction Company" 'Asset Reconstruction Company' (ARC) is similar to asset management company prevalent globally. Narsimham Committee ' I (1991) envisaged setting up of a central Asset Reconstruction Fund. It was proposed that the same be funded by resources from Central Government. This was to facilitate Banks to improve their balance sheets by cleaning up their non-performing loans portfolio. However, the same could not get implemented for various reasons. Therefore, Narsimham Committee ' II (1998) proposed asset reconstruction companies, on the similar lines of asset management companies, a process initiated in Malaysia, Korea and several other countries and was successfully implemented and operated in these countries. By keeping the original objective of asset reconstruction fund in mind and to give more emphasis on the reconstruction aspects, the term ARC has been used in India. Need for Asset Reconstruction Companies To alleviate the global issues of bad loans, Asset Reconstruction Companies have been set up in various countries of the world. Bad loans arise as part of banking operations or due to regulatory requirements or change in environment. There could be two possible ways to obviate the accumulation of bad loans. (i) Banks to manage their own bad loans by providing incentives, legislative powers, or special accounting or fiscal advantages. (ii) Facilitate the management of bad loans by apex body through a specialised agency or agencies. ARCs are the specialised agencies which facilitate bad loan resolution of banking system. Both approaches have their own pluses and minuses and there is no empirical evidence to suggest which approach is better than the other. Across the world, various entities have tried either of the two approaches. There are success as well as failure stories for the above. Advantages of an ARC approach -All advantages available for any centralized process -ARCs being the specialized agencies have NPA resolution as the core activity -Banks can concentrate on normal banking operations rather than dealing with sticky assets -ARCs as a Central agency acquires bad loans from Banking system by bringing in investors. Enacting The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002) and subsequent amendment by the Government of India has given birth to the Asset Reconstruction Companies in India. Vision To be ARC of choice for Banks and FIs for distinctive cost effective and prompt NPA resolution for distressed enterprises for hand holding human approach. Mission Speedy resolution and rehabilitation of NPAs by innovative strategy and effective implementation in transparent manner in keeping with best corporate practices.



Industry Insurance and Financial Services
Business Type Service Provider
Firm Type Pvt Ltd.
Expand Level National

Products & Services

We are the service providers of financial system in the effective resolution of NPAs by operating in transparent manner with flexibility of the private sector.

Business Area:-
Acquisition of Assets
Outsourcing Activities
Investors
Assets Buyers

Property for Sale:-
Sale under SARFAESI Act
Sale through DRT
List of Financial Assets for Sale.

Product Catalogue (4)

Contact Details

ASREC (India) Ltd.

Solitaire Corporate Park, Building No.2, Unit No 201-202 A & 200-202 B, Gr Floor, Andheri Ghatkopar Link Rd, Chakala, Andheri (E),
Mumbai, 400093 (Maharashtra) - (India)



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