Draft securitisation norms issued

To ensure healthy development of the securitisation market, RBI has announced draft guidelines of securitisation of standard assets for banks, FIs and (NBFCs).

For a transaction to be treated as securitisation, it should follow a two-stage process. In the first stage, the assets should be pooled and transferred to a SPV, RBI said.

In the second, repackaging and selling the security interests representing claims on incoming cash flows from the asset pool to the third party investors must be effected.