Retail asset securitization market rated volumes declines in FY2014: Care Ratings

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Capital Market
Last Updated : Jun 25 2014 | 11:55 PM IST
Indian retail asset securitization market rated volumes have decreased marginally by around 6% to Rs 28300 crore in FY14 as against Rs 30300 crore in FY13. In FY14, although there was greater clarity with the introduction of a new tax regime in Union Budget, the market started moving towards 'direct assignment' route due to a combination of factors making it an attractive proposition for both the originators as well as the investors.

RBI issued guidelines on reset for credit enhancement (CE) for Securitization transactions. It will provide capital relief for the originators by the partial release of CE.

The RBI circular for change in treatment of Rural Infrastructure Development Fund (RIDF) and certain other funds under priority sector guidelines has come as a relief for banks, but this could too have a negative impact on new securitisation issuances going forward.

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First Published: Jun 25 2014 | 4:01 PM IST

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