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.
You’ve Read Your Free Stories For Now
Sign up and keep reading more stories that matter to you.
