Securitization is a process of converting financial assets into marketable securities. It is a structured finance device in which an entity seeks to pool together its interest in identifiable cashflows over a span of time and transfer them to a separate entity (Special Purpose Vehilce), specially created for the purpose. This process enhances liquidity in the market.
Securitization can be done either through the Direct Assignment route or through Pass Through Certificate (PTC) route wherein a Trust is created and securities in the form of PTC are issued to investors.
Scope of Services
- Liaising with Originators, Bankers, Rating Agencies, Arrangers, Legal Counsels and Investors.
- Vetting of legal documents and providing inputs in transaction documents as per guidelines.
- Ensuring that the transaction is in accordance with the RBI Guidelines and SEBI Guidelines.
- Opening and operating issue proceeds/collection & payout account.
- Collecting proceeds from the investors and providing the same to the originator.
- Corporate action and Issuance of PTCs and Demating of Securities.
- Monitoring credit enhancement and invoking the credit enhancement/liquidity facility in case of the shortfall as per RBI Guidelines.
Timely and accurate preparation of Trustee report in coordination with assignor/Originator & assignee/PTC Holder based on pool of loan details provided by the Assignor and sending out the same along with future cash flows to the investor, originator & rating agency.
- Reconciliation of report and solving query of Assignee and responding to any queries/clarifications sought by the investors.
- Redemption of the PTCs on closure of the transaction.
- Deduction and depositing of statutory dues with Government of India, conducting annual audit of the trusts, Issuance of quarterly TDS certificates to beneficiaries along with annual submission of audit reports, Form 64E and 64F.
- Compliance with RBI Guidelines and SEBI Guidelines.
