CIFA engages in constructive dialogue with the Cyprus Securities and Exchange Commission to propel the industry forward cyprus-mail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cyprus-mail.com Daily Mail and Mail on Sunday newspapers.
The Indian securitisation market is expected to slow down this fiscal year, following a 24% fall in securitisation volumes in the last quarter of fiscal 2024. Rating company ICRA predicts securitisation volumes to cross Rs 2 lakh crore this fiscal, down from Rs 1.9 lakh crores in the previous year. The rising private credit market with Alternative Investment Funds is outpacing securitised papers, with bank originated volumes growing 50% to Rs. 10,000 crores in fiscal 24.
Unlike the earlier circular, which provided that in case of exposure to AIFs with subordinate units, the entire provisioning may have to be made to Tier 1 entirely. It has now been clarified that it should be done equally across Tier 1 and Tier 2. This should help dilute the harsh effect of such provisioning for REs to an extent since Tier 1 capital is dear for various reasons.
The RBI has said that provisioning will be required only to the extent of the RE s investment in the AIF scheme that is further invested in the debtor company, rather than on the entire investment in the AIF scheme.