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The Factoring Regulation Act, 2011

Central

An Act to provide for and regulate assignment of receivables by making provision for registration there for and rights and obligations of parties to contract for assignment of receivables and for matters connected therewith or incidental thereto.

Act number
12 of 2012
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
22 Jan 2012

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

36 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Registration of factors.
  4. Section 4Provisions of non-banking financial companies apply to factor.
  5. Section 5Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company.
  6. Section 6Powers of Reserve Bank to give directions and to collect information from factors.
  7. Section 7Assignment of receivables.
  8. Section 8Notice to debtor and discharge of obligation of such debtor.
  9. Section 9Discharge of liability of debtor on payment to assignee.
  10. Section 10Payment made by debtor to assignor to be held in trust for benefit of assignee in certain cases.
  11. Section 11Rights and obligations of parties to contract for assignment of receivables.
  12. Section 12Liability of debtor.
  13. Section 13Assignor to be trustee of assignee.
  14. Section 14Liability of debtor in case of an assignor being mircro or small enterprises.
  15. Section 15Principle of debtor protection.
  16. Section 16Defences and right of set off of debtor.
  17. Section 17Modification of original contract.
  18. Section 18Breach of contract.
  19. Section 19Registration of certain assignments of receivables transactions.
  20. Section 20Public inspection.
  21. Section 21Penalties.
  22. Section 22Penalties for non-compliance of direction of Reserve Bank.
  23. Section 23Offences.
  24. Section 24Cognizance of offences.
  25. Section 25Offences by factors.
  26. Section 26Provisions of this Act to override other laws.
  27. Section 27Application of other laws not barred.
  28. Section 28Limitation.
  29. Section 29Confidentiality of information.
  30. Section 30Power to exempt.
  31. Section 31Provisions of this Act not to apply or affect in certain cases.
  32. Section 31APower to make regulations.
  33. Section 32Power of Central Government to make rules.
  34. Section 33Laying of rules.
  35. Section 34Power to remove difficulties.
  36. Section 35Amendments to certain enactments.