SARFAESI ACT AMENDED

Now, the Banks and Asset Reconstruction Companies (ARCs) will be allowed to convert part of their debt into equity of the borrowers. Another important amendment was allowing banks to bid for the possessed property, in case there were no other bidders at the time of auction. Earlier banks were allowed to convert debt into equity only if the company were to enter the corporate debt restructuring (CDR) cell and approach the banks with the offer.