News

TASK FORCE FOR THE DEVELOPMENT OF A SECONDARY  MARKET FOR CORPORATE LOANS

Written by Talent KAS

Related Topics: Indian Economy, Committees & Reports

News

The Task Force for the development of a secondary market for corporate loans has submitted its report to the RBI Governor.

About the Task Force

  • The Task Force was constituted by RBI under the Chairmanship of Shri T.N. Manoharan, Chairman, Canara Bank.
  • The Terms of Reference of the Task Force were to review the existing state of market for loan sale/transfer in India as well as the international experience in loan trading and to make recommendations for the development of secondary market for corporate loans in India.

Key Recommendations

  • Setting up of a Self-Regulatory Body of participants which will finalise detailed modalities for the secondary market for corporate loans including standardisation of documentation;
  • Setting up a Central Loan Contract Registry;
  • Setting up an online loan sales platform to conduct auctions/sale process of the secondary market loans;
  • Amending the provisions for securitisation and assignment of loans, asset reconstruction, foreign portfolio investment, and external commercial borrowings.
  • Amending the regulations issued by SEBI, IRDA and PFRDA to enable participation of non-banking entities such as mutual funds, insurance companies and pension funds.

[Source: The Hindu, rbi.org]

About the author

Talent KAS

Leave a Comment


The maximum upload file size: 750 MB.
You can upload: image, document, text.