Section 10(1) of the SARFAESI Act permits an ARC to act as a manager under Section 13(4)(c). However, a specific prohibition is imposed on this function by a proviso. What does the proviso to Section 10(1) prohibit?

Section 10(1) permits an ARC registered under Section 3 to: (a) act as an agent for any bank or FI for recovering dues from borrowers; (b) act as a manager under Section 13(4)(c) on mutually agreed fees; and (c) act as receiver if appointed by any court or tribunal. The proviso to Section 10(1) specifically prohibits an ARC from acting as a manager under clause (b) if 'acting as such gives rise to any pecuniary liability.' This restriction protects the ARC from incurring financial obligations in excess of what it can bear while managing a distressed borrower's assets, particularly since an ARC is itself a financial intermediary with limited capital base and regulatory obligations.