How active is the securitisation market in your jurisdiction? What types of securitisations are typical in terms of underlying assets and receivables?
The securitisation market in India is still developing although for some structures it has evolved over the last 15 years. The first guidelines on securitisation were issued by the Reserve Bank of India (RBI), as the principal financial regulator in India, in 2006. Post financial crisis, RBI revised the guidelines on securitisation in 2012 and introduced some stringent measures. In the year 2021, the RBI completely revamped the guidelines on securitisation to bring it more at par with other developed markets.
The securitisation of following underlying assets is common in India: (a) vehicle loan receivables; (b) commercial loan receivables; (c) mortgage loan receivables; and (d) trade receivables. Securitisation of following receivables are in developing phase: (a) lease rental receivables; (b) infrastructure related receivables; and (c) other receivables arising from non-financial contracts.
Please click here to read the full publication by Anish Mashruwala and Pratish Kumar published in Legal 500.
Anish is a senior member of Finance Practice of the firm. He focuses primarily on Banking & Finance, Financial Services and Cross Border Investments & Acquisitions.