Company Registration in Tirupur
Disclosures to be made by the SPV/Trustee
· The SPV/Trustee should make available or provide to RBI or other regulators, as and when required, a copy of the trust deed, the financial accounts and statement of affairs, its constitution, ownership, capital structure, size of issue, terms of offer including interest payments/yield on instruments, details of underlying asset pool and its performance history, information about originator, transaction structure, service arrangement, credit enhancement details, risks, factors etc.,
- Investor should be informed in writing that: their investments do not represent deposits or other liabilities of the originator, services and/or performance of the securities issued, or collectability of receivable pools; and their investments can be subject to investment risk, including pre-payment risk, interest rate risk, possible delays in repayment and loss of income and principal invested.
- The SPV/trustee should publish a periodical report on any re-schedulement, restricting or re-negotiation of the terms of the agreement, effected after the transfer of assets to the SPV, as a part of disclosures to all the participants at quarterly/Half yearly intervals. The authorization of investors to this effect may be obtained at the time of issuance of securitized paper.
- SPV should obtain signed acknowledgement from investors indicating that they have read and understood the required disclosures.
Disclosures to be made by the originator
The originator should make the following disclosures, as notes to accounts, presenting a comparative position for two years:
- · Total number of book value of loan assets securitized;
- Sale consideration received for the securitized assets and gain/loss on sale on account of Securitization; and
- Form and quantum (outstanding value) of services provided by way of credit enhancement, liquidity support, post securitization asset servicing, etc.,
In addition to the above balance sheet disclosures, originating banks of the securitization transactions should provide disclosures to the Audit sub-Committee of their Board, on quarterly basis, as per the format prescribed in the attachment.
For Company Registration in Tirupur -> Click here