What is Securitisation company?

What is Securitisation company?

Definition: Securitization is a process by which a company clubs its different financial assets/debts to form a consolidated financial instrument which is issued to investors. In return, the investors in such securities get interest. Description: This process enhances liquidity in the market.

What is Securitisation company or reconstruction company?

(z) “securitisation” means acquisition of financial assets by any 2[asset reconstruction. company]from any originator, whether by raising of funds by such 2[asset reconstruction. company]from 3[qualified buyers]by issue of security receipts representing undivided interest in such.

Where is the transaction of Securitisation registered?

the Central Registry
It may be noted that initially transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central …

How do I register an asset reconstruction company in India?

DOCUMENTS REQUIRED FOR REGISTRATION OF ARC ➲ Certified copy of latest MOA & AOA of the company. ➲ Certified copy of the certificate of incorporation. ➲ Board resolution stating that the company has not accepted any deposit. ➲ None of the directors shall be disqualified as per the Companies Act.

Why do companies go for securitization?

Advantages of securitisation generally, the interest rates payable on securitised bonds sold by an SPV are lower than those on corporate bonds. private companies get access to wider capital markets – both domestic and international. shareholders can maintain undiluted ownership of the company.

Is Cersai registration mandatory?

All the scheduled commercial banks, Small Finance Banks, Local Area Banks, all cooperative banks, all NBFCs, and All India financial institutions are required to register and update CERSAI.

What is securitization application?

Securitisation Application under Section 17(1) of the SARFAESI Act is maintainable only when actual/physical possession is taken by the secured creditor or the borrower loses actual/physical possession of the secured assets.

Is CERSAI registration mandatory?

How can I get CERSAI certificate?

The person seeking for registration will be required to fill out the registration form electronically available under the ‘Entity Registration’ option on the CERSAI website. The user must possess a Digital Signature Certificate (DSC) to gain access to the CERSAI portal and to fill out the relevant details.

What is the process of registration of securitization company?


  1. Requirement of registration.
  2. Conditions for registration.
  3. Rejection of application.
  4. Prior approval for substantial change in company.
  5. Cancellation of certificate of registration.
  6. Appeal provision.