Related Topics: Indian Economy, Committees & Reports
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.
- 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]