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

Offshore pension funds, (b) What are the possible advantages of an offshore...

(b) What are the possible advantages of an offshore pension fund?

State the goal of shareholders wealth maximisation, Goal of Shareholders we...

Goal of Shareholders wealth maximisation Shareholders' wealth maximisation goal gives us the best results since effectsof all the decisions taken by company and its managers ar

Working capital, W orking Capital Working capital is measured as th...

W orking Capital Working capital is measured as the difference among organization present assets and its current liabilities. Therefore, it is interpreted by some as a meas

Common size and index analysis, sk company had the following balance sheets...

sk company had the following balance sheets and income statements over the last 3 years

Fund raising and investment, Fund Raising and Investment: Fund commitme...

Fund Raising and Investment: Fund commitment requirement in Hedge Funds sometimes exceeds millions of dollars. In addition, high minimum investments are sometimes closed to new

Accounting framework - convention of disclosure, Accounting Framework - Con...

Accounting Framework - Convention of Disclosure The doctrine of disclosure suggested in which all accounting statements should be honest and to that end, full disclosure of al

Explain about temporary or variable working capital, Q. Explain about Tempo...

Q. Explain about Temporary or Variable Working Capital ? Temporary or else Variable Working Capital - Any amount over and above the permanent level of working capital is called

PROFIT MAXIMIZATION, what are the arguments in favour of profit maximizat...

what are the arguments in favour of profit maximization?

Future value, (a).At the end of three years, how much is an initial deposit...

(a).At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? (b).b. A

Define long position in future contract and options contract, What is the m...

What is the major difference in the obligation of one with a long position in a futures (or forward) contract in comparison to an options contract? Answer: A futures or forward c

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