The Ministry of Law and Justice has appointed the 23rd day of August, 2021, as the date on which the provisions of the Factoring Regulation (Amendment) Act, 2021 shall come into force vide notification dated August 19, 2021. The Parliament has enacted the Factoring Regulation (Amendment) Act, 2021 on August 7, 2021. Key highlights of the Amendment are:
- It states that every factor shall register the particulars of every transaction of assignment of receivables in his favor with the Central Registry set-up the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
- The Reserve Bank may, by notification, make regulations consistent with this Act to carry out the provisions of this Act.
*Tanvi Singh, Editorial Assistant has reported this brief.