Securitization
Securitization S ecuritization is the process of pooling and repacking of homogeneous long term illiquid financial assets and non-performing assets into marketable securities, which can be sold to investors. Thus it is taking a primary role in imparting liquidity & profitability to marketers by converting long term illiquid and non-performing assets into short term liquid and performing assets. The process leads to creation of financial instruments that represents ownership interest in/ is secured by segregated income producing assets /pool of assets, where the pool of assets collaterises the securities. These assets are generally secured by personal/real property such as automobiles, real estates or equipment loans (but in some cases unsecured). Securitization in India is regulated by the SARFAESI Act 2002- (Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest). Pro...