Hurdles in implementation of securitization, Financial Management

Assignment Help:

The following are considered the major stumbling blocks:

  1. The process becomes expensive because of the stamp duty payable.

  1. It also attracts the provisions of the Registration Act.

  1. One interpretation of the Transfer of Property Act has been that assignment of a debt has to be in whole and not in part. Besides, the Sale of Goods Act supports the view that only a property in existence is capable of being transferred. Therefore, securitization of future receivables is not covered.

  1. Certain provisions of the Income Tax law inhibit the process.

  1. A more efficient foreclosure law is needed. Along with changes in the legal environment, regulatory issues too have to be addressed. The latter understandably have not evolved in India - even in the developed countries the concept is new. The different institutions that will participate and the several stages in a typical transaction will come under different regulatory ambit. A formal and harmonious regulatory framework for securitization is, therefore, needed. Also, the investor base needs to be both strengthened and widened. Recently, the Securities and Exchange Board of India permitted mutual funds to trade in securitized debt. There is a strong case for persuading foreign institutional investors to invest in the market. Like the rest of the debt market, the one dealing in securitized instruments needs to be transparent and technologically up-to-date.


Related Discussions:- Hurdles in implementation of securitization

Business have a positive accounting profit, Can a business have a positive ...

Can a business have a positive accounting profit and a negative economic profit? Please explain.

Types of equity securities , Types of equaty Securities Equity securiti...

Types of equaty Securities Equity securities, traditionally, are classified into two types when they are issued. They are: Common Stock, and Preferred Stock.     Common Stoc

Debt and payment, Jane has agreed to sell her Porshe 911 Cabriolet worth RM...

Jane has agreed to sell her Porshe 911 Cabriolet worth RM1.3 million to Lim for the price of RM 500,000. The decision was made rather hastily as Jane need money to pay her creditor

Role of investment banking in investment intermediaries, What is the role o...

What is the role of investment banking in investment intermediaries? Investment banks: These banks assist corporations or governments into the issue of new debt or equity

Accounting, Accounting : Many people believe financial management only r...

Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books.  Whi

CAPM, Techiniques of capm Effects of capm

Techiniques of capm Effects of capm

Historical inflation and stock value experience, Historical Inflation and S...

Historical Inflation and Stock Value Experience The experimental evidence denies the status of stocks as a good hedge against inflation. A study conducted by Ibbotson and Brins

Identify an analytic theme for fictitious business, 1. identify an analytic...

1. identify an analytic theme or goal for a fictitious business or something that you are working on (e.g. Maximize revenue in a car dealership) 2. Build an Enterprise Bus Matri

Determine the concept of dividend yield, Dividend yield Dividend yield ...

Dividend yield Dividend yield = (Dividend per share/Market share price) x 100% Dividend yield is the cash return on the share (not whole return which is cash dividend and ca

Show the signs of overtrading, Q. Show the Signs of Overtrading? There ...

Q. Show the Signs of Overtrading? There are a number of usually recognised signs that a company may be overtrading. These are considered mutually with relevant financial data f

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd