Securities And Exchange Board Of India (Issue And Listing Of Securitised Debt Instruments And Security Receipts) Regulations, 2008 Chapter III CONSTITUTION AND MANAGEMENT OF SPECIAL PURPOSE DISTINCT ENTITIES AND INCIDENTAL MATTERS
Contents
Notifications
Acts
Rules & Regulations
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
True sale and receivables assignment safeguards govern securitisation transfers to special purpose distinct entities. Assignment of debt or receivables to a special purpose distinct entity requires identifiable cash flows, a valid enforceable pre-existing interest, ... Summary
True sale and receivables assignment safeguards govern securitisation transfers to special purpose distinct entities.
Assignment of debt or receivables to a special purpose distinct entity requires identifiable cash flows, a valid enforceable pre-existing interest, freedom from encumbrances, necessary consents, no set-off risk, arms' length pricing, and adherence to representations and warranties. The receivables must be duly assigned and legally realizable, and the transaction must be structured as a genuine true sale that minimises consolidation risk and keeps the entity remote from bankruptcy, insolvency, and winding up risks. Acquisition from an originator in the same group as, or under the same control as, the trustee is prohibited.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.