Three significant changes in Securitisation Directions
Loans with less than 1 year to go cannot be securitised; Minimum holding period norms tweaked, may impact home loan securitisation
– Vinod Kothari | finserv@vinodkothari.com
On December 5, 2022, the RBI silently made some significant changes and updated the RBI (Securitisation of Standard Assets) Directions, 2021 (‘SSA Directions’). It is difficult to understand if these amendments are pursuant to some consultation, or feedback gathered from supervisory experience. The three significant changes seem to be mutually disconnected, though some of the amendments are related to the amendments made, on the same date, to the RBI (Transfer of Loan Exposures) Directions, 2021 (‘TLE Directions’) too.
We deal with the three amendments, and their implications, below:
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