Financial assets which can be bought by SC/RC from any bank or FI where the asset is a NPA, including non-performing Bond or Debenture.
A Standard Asset where:
- The asset is under consortium/ multiple banking arrangement
- At least 75% by value of the asset is classified as non-performing asset in the books of other banks/ financial institutions, and
- At least 75% (by value) of the banks / financial institutions who are under the consortium / multiple banking arrangements agree to the sale of asset to SC/RC
Thus, an asset reconstruction company can buy standard assets as well. However, enforcement of security interest cannot be applied against the standard assets.