Securitization

Shobhit Jain (Querist) 23 April 2020 This query is : Resolved

Are there any investment restrictions put up by RBI on sale of loan portfolio by means of securitization to a foreign investor?

For eg. Bank A (Indian Bank) sales its loan portfolio to Investor B (based in USA) whether such transactions are covered under external commercial borrowings or any other restrictions put up by RBI for raising foreign currency fund?

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This discussion investigates whether the Reserve Bank of India (RBI) imposes investment restrictions when an Indian bank sells its loan portfolio to a foreign investor through securitisation. It questions if such transactions fall under external commercial borrowings or other RBI regulations concerning foreign currency funds. The conversation points to specific RBI circulars and master directions for detailed information on forex guidelines applicable to these deals.

Raj Kumar Makkad (Expert) 23 April 2020
Go through the following circular of RBI and get the desired information:

https://m.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9902

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Rajendra K Goyal (Expert) 25 April 2020
Please refer RBI/DNBR/2016-17/45 Master Direction DNBR.PD.008/03.10.119/2016-17 updated upto 17.02.2020 specifically annexure XXII with master circular on RBI Prudential Norms.
Forex guidelines has to be followed in such transaction.

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Raj Kumar Makkad (Expert) 25 April 2020
Your silence over the response is indicative that either you are not interested to have replies or your purpose stands achived?

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