Securitisation Trustee (Unlisted)

Securitisation Trustee (Unlisted)

Securitization is a process whereby commercial credits are packaged and sold in the form of financial instruments. Securitisation can be done for Home Loan, Auto Loans, Micro Finance Loans, Commercial Vehicle Loans, etc. Banks are big buyers of these loans originated by NBFC/HFC/MFIs. Securitization can be done either through the Direct Assignment route or through the Special Purpose Vehicles (SPVs) route.

In Direct Assignment transactions, a pool of loans are assigned by Assignor (Originator) to Assignee (Investor) and the entire pool of loan is passed to assignee subject to RBI guidelines whereas Assignor continues to service the loan for and on behalf of the Assignee. The Assignee Representative is appointed by the Assignee/Assignor to prepare the report, make the payment, send it to the assignee.

In Case of SPV created by way of Trust, Pass Through Certificate is issued to the investor against the pool of loan.

A trustee company is appointed as Assignee/Assignor Representative in the Direct Assignment Transaction or as trustee in case a SPV in form of a trust is created.

Scope of Service

  • Vetting/providing inputs in transaction documents as per guidelines
  • Opening and operating issue proceeds/collection & payout account
  • Corporate action of PTC’s
  • Preparing accurate and timely report along with coordinating with assignor/Originator & assignee/PTC Holder based on pool of loan details provided by the Assignor
  • Making payouts and send reports to the assignee
  • Deduction and payment of statutory dues
  • Compliance with RBI Guidelines and SEBI Guidelines
  • Regular analysis of servicer reports, ensuring timely and accurate payouts
  • Reconciliation of report and solving query of Assignee