The Reserve Bank of India (RBI) constituted a committee to review the existing state of mortgage securitisation in India and suggest measures to deepen it.
About:
Official name: Committee on the Development of Housing Finance Securitisation Market.
Composition: The six-member panel has been constituted under the chairmanship of Harsh Vardhan, Senior Advisor with Bain & Co.
Timeline: The committee shall submit its report by the end of August 2019.
Terms of reference:
To review the existing state of mortgage backed securitisation in India and suggest measures to deepen it.
To assess the role of various counterparties, including servicers, trustees, rating agencies, in the securitisation process and suggest steps to address the key risks.
Need of committee:
The mortgage securitisation market in India is primarily dominated by direct assignments among a limited set of market participants on account of various structural factors impacting both the demand and the supply side, as well as certain prudential, legal, tax and accounting issues.
Thus, a careful design of a robust and transparent securitisation framework assumes paramount significance.
Dear Student,
You have still not entered your mailing address. Please enter the address where all the study materials will be sent to you. (If applicable).
