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Act12
Enacted 2012

The Factoring Regulation Act, 2011

In force 36 sections Finance

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 12 of 2012 Enacted 22 Jan 2012 In force 02 Apr 2012 Department Department of Financial Services

Administered by. Ministry of Finance, Department of Financial Services · Other Acts of 2012

Preamble

THE FACTORING REGULATION ACT, 2011

ACT NO. 12 OF 2012

[22nd January, 2012.] 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.

BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:--

Sections

Type to filter. 36 sections.

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

Schedules

This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Amending Acts

1 Act amending this enactment, passed by Parliament of India. The text above is the consolidated text as published.

  • The Factoring Regulation (Amendment) Act, 2021.12 of 2021

Rules made under this Act

5 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • Registration_of_Assignment_of_Receivables_(Reserve_Bank)_Regulations-20222022
  • Registration_of_Factors_(Reserve_Bank)_Regulations-20222022
  • Registration_of_Assignment_of_Receivables_(Amendment)_Rules-20212021
  • Registration_of_Assignment_of_Receivables_(Amendment)_Rules-20182018
  • Registration of Assignment of Receivables Rules 2012 under Factoring Regulation Act 20112012

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 36 sections of this Act has its own page. This page is not a substitute for legal advice.