Which of the following Sections of the SARFAESI Act states that a company can carry the business of asset reconstruction only after obtaining a certificate of registration from RBI in addition to having a prescribed limit of minimum net owned fund requirement?

• A. Section 5
• B. Section 3
• C. Section 4
• D. Section 2

Answer: (B)

As per Section 3 of the SARFAESI Act, a company can carry the business of asset reconstruction only after obtaining a certificate of registration from RBI and, having the owned fund of not less than Rs 2 crore.