abhishreshthaa
Abhijeet S
Mortgage Market
Originating in the mortgage markets in the USA in 1970s, securitization has quickly developed to become one of the most important financial innovations of our time.
Securitization has emerged globally as an important technique for bundling assets and segregating risks into marketable securities which has found a wide variety of applications and users all over the world. It has helped to achieve an even distribution of risk across activities by minimizing asset-liability maturity mismatches in order to reduce regulatory capital requirements.
This paper discusses the present state of the securitization market in India followed by the critical evaluation of the Securitization & Reconstruction of financial assets and Enforcement of Security Interest Ordinance, 2002 and impact of the same on the Banks.
Thereafter the article highlights the importance of Special purpose Vehicle and various Taxation and Accounting issues which need to solved for the smooth functioning of securitization. The article concludes by describing the impact of securitization transaction in the books of originator and SPV by way of case study.
Originating in the mortgage markets in the USA in 1970s, securitization has quickly developed to become one of the most important financial innovations of our time.
Securitization has emerged globally as an important technique for bundling assets and segregating risks into marketable securities which has found a wide variety of applications and users all over the world. It has helped to achieve an even distribution of risk across activities by minimizing asset-liability maturity mismatches in order to reduce regulatory capital requirements.
This paper discusses the present state of the securitization market in India followed by the critical evaluation of the Securitization & Reconstruction of financial assets and Enforcement of Security Interest Ordinance, 2002 and impact of the same on the Banks.
Thereafter the article highlights the importance of Special purpose Vehicle and various Taxation and Accounting issues which need to solved for the smooth functioning of securitization. The article concludes by describing the impact of securitization transaction in the books of originator and SPV by way of case study.