On November 26, 2018, the Reserve Bank of India (“RBI”) issued a circular on ‘Relaxation on the guidelines to NBFCs on securitisation transactions’ (“Circular”) to relax the norms for non-banking financial companies (“NBFCs”) to securitise their loan books. As per the Circular, NBFCs have been permitted to securitise loans of over five-year maturity after holding them for six months on their books, subject to the condition that the minimum retention requirement for such securitisation/assignment transactions shall be 20% of the book value of the loans being securitised/ 20% of the cash flows from the assets assigned.
Further, the above relaxation shall only be applicable to securitisation/assignment transactions carried out during a period of 6 months from the date of the Circular.
Express Building
9 – 10 Bahadur Shah Zafar Marg
Delhi – 110002
+91 11 23701284/5/7
155, ESC House, 2nd floor,
Okhla Industrial Estate, Phase 3,
New Delhi – 110020
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.