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Wednesday, December 03, 2025 | 04:20 AM ISTहिंदी में पढें
RBI proposes market based mechanism for securitization of stressed assets
Currently, standard assets are securitised widely, where banks and non-banking finance companies (NBFCs) participate actively to acquire such assets
 "Reserve Bank of India, RBI")
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The securitisation of stressed assets may also involve a distinct class of facility providers – the resolution managers (ReMs) – responsible for administering resolution/recovery of the underlying stressed exposures.
The Reserve Bank of India (RBI) on Wednesday released a draft framework for the securitisation of stressed assets, aiming to repackage these assets into tradable securities with varying risk profiles. This initiative seeks to create a market for stressed assets, attracting broad investor participation, to supplement the current practice where such assets are transferred to asset reconstruction companies under the SARFAESI Act.
“…it is proposed to enable securitisation of stressed assets through market-based mechanisms. This is in addition to the existing ARC route under the SARFAESI Act, 2002,” said Sanjay Malhotra, governor, Reserve Bank of India (RBI).
“…this might enable
Topics : RBI Securitisation finance sector NBFCs
