New regime for securitisation and sale of financial assets
Team, Vinod Kothari Consultants
On Monday, 8th June, 2020, the RBI released, for public comments, two separate draft guidelines, one for securitisation of standard assets, and the other for sale of loans. Once implemented, these guidelines will replace the existing regulatory framework that has stood ground, in case of securitisation for the last 14 years, and 8 years in case of direct assignment. We have separately dealt with the Draft Directions on Securitisation of Standard Assets in a write up titled “Originated to transfer- new RBI regime on loan sales permits risk transfers”