This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.

Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.

By clicking on the "I understand and agree" button below, the user acknowledges that:

  • This website is not a mode of advertisement, promotion, personal communication, or solicitation of any sort whatsoever and the user wishes to gain information about us for his/her own reasons;
  • Entering into this website does not establish a lawyer-client relationship.

We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.

JC - Legal Updates - Discussion Paper on Securitisation of Stressed Assets released by RBI

Legal Updates

31 Jan 2023

Discussion Paper on Securitisation of Stressed Assets released by RBI

Brief Overview:

A Discussion Paper on Securitisation of Stressed Assets (“Discussion Paper”), detailing relevant contours of the proposed framework on Securitisation of Stressed Assets has been released by RBI.

Technical Details:

The Discussion paper invites comments on nine relevant areas broadly covering:

1)    Asset universe;

2)    Asset eligibility;

3)    Minimum risk retention;

4)    Regulatory framework for special purpose entity and resolution manager;

5)    Access to finance for resolution manager;

6)    Capital treatment;

7)    Due diligence;

8)    Credit enhancement; and

9)    Valuation of securitisation notes.

Currently the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 provides for securitisation of Non-Performing Assets (“NPAs”) through an Asset Reconstruction Company. No corresponding mechanism for securitisation of NPAs through the special purpose entity route exists.

The Discussion Paper aims to provide for a framework that is structurally aligned with the framework for securitisation of standard assets.

*Comments on the Discussion Paper may be submitted by 28th February 2023 to The Chief General Manager, Credit Risk Group, Department of Regulation, Central Office, Reserve Bank of India.

For further details, please see:


For any queries / clarifications, please feel free to ping us and we will be happy to chat:

●  Mr. Ankit Sinha (ankit.sinha@jclex.com)

●  Mr. Saurabh Sharma (saurabh.sharma@jclex.com)

●  Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)