CERSAI & Its Role in Securitization of Assets

 CERSAI, or the Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a complete, comprehensive registry of all assets that can be used as collateral in case of a bank loan or mortgage. The key purpose behind CERSAI’s existence is to ensure that there is a complete log of all assets and the financial statuses of their owners, thus keeping a record of which asset has been kept as collateral with which bank.

This also helps banks and Asset Reconstruction Companies choose which assets need to be sold to Asset Reconstruction Companies and which assets need to be kept. The registry is also used for security matters in order to prevent possible fraud where one asset is kept as collateral with different banks. All banks need to do is check the registry in order to know if any bank or authorized lender already has a claim over the asset.

CERSAI’s ability to be comprehensive also relies on the information submitted by various banks and individuals. Banks are often required to submit reports on the assets they own and their current status. This central registry of all loans, collateral, and assets helps banks, individuals, and asset reconstruction companies keep track of who owes whom, and how much. Asset reconstruction companies often use CERSAI to check the status of the discounted assets they buy, and thus rely on the registry to reconstruct assets and report their status as well. People also have the option of submitting additional records or contracts along with the property’s details for a more complete view on the ownership of the asset.

In conclusion, CERSAI is a comprehensive registry that also deals with securitization of all assets. However, the registry can actually be viewed by any individual or organization for a small fee.