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- SARFAESI | Alert | AIF Cat – II and Cat -III specified as “Qualified Buyers”
Further to various changes being introduced by the Government to reform the debt recovery and bankruptcy framework, the Reserve Bank of India vide its notification dated May 16, 2018 (“Notification”) (available here) has specified the alternative investment funds of Category II (“AIF Cat-II”) and alternative investment funds of Category III (“AIF Cat-III”) as “qualified buyers” (“QBs”) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”). Notably, the SARFAESI Act was amended vide the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, to bring a series of changes to the SARFAESI Act.
As per the Notification, in order to be eligible as QBs under the SARFAESI Act, AIF Cat-II and AIF Cat-III (either referred to as “AIF”), need to comply with following conditions: