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

Explain implications of deviations - purchasing power parity, Explain the i...

Explain the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market. Answer:  If exchange rate changes satisfy pu

Describe the concept of block of assets, Describe the Concept of Block of A...

Describe the Concept of Block of Assets? (a) Comment on the techniques of Risk Analysis commonly employed in Capital Budgeting. (b) Define clearly the concept of block of as

Evaluate alternative hedging strategies, Peak Inc. needs to order Canadian ...

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

Forms of bank finance, Q. Forms of Bank Finance? A firm can draw funds ...

Q. Forms of Bank Finance? A firm can draw funds from a bank within the maximum credit limit sanctioned. It can draw funds in the following forms: 1) Overdraft 2) Cash Cre

Describe puttable-convertible-foreign bonds and eurobonds, Describe the Put...

Describe the Puttable, Convertible, Foreign and Eurobonds. With puttable bonds the release date is under control of the holder (that is the opposed of the callable bond case)

Standard communication protocol used for the internet, Question: (a) W...

Question: (a) What is a computer virus? List and explain the different type of computer viruses? (b) List 4 steps which you can use to minimize the chances of being infec

What do you mean by marketability, Q. What do you mean by Marketability? ...

Q. What do you mean by Marketability? Marketability: The firm must be able to sell its holdings and realize cash as and when required. The securities must be readily marketable

Estimate the companys wacc, Assemble all other inputs/assumptions based on ...

Assemble all other inputs/assumptions based on the past data. Use your best judgment to have the most reasonable estimates. Tasks 1. Prepare an Excel spreadsheet containi

Explain about net working capital concept, Q. Explain about Net Working Cap...

Q. Explain about Net Working Capital Concept? Net Working Capital Concept: - Net working capital demotes to the difference among current assets and current liabilities. Current

Debenture, Debenture A kind of debt instrument that is not secured by p...

Debenture A kind of debt instrument that is not secured by physical any asset or collateral is known as debenture. Debentures are backed by the general creditworthiness and sta

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