Securitization Trustee

IDBI Trusteeship Services Ltd is the leading Trusteeship Company for securitisation. IDBI Trusteeship holds substantial market share of the entire industry. A typical process of asset securitization involves sale of specific receivables to a Special Purpose Vehicle (“SPV”). While globally different forms of entities are used as SPVs, in India trusts make up the most popular form of SPV structure. ITSL acts as a trustee to following asset classes.

1. ABS (Asset Backed Securitisation)

  • Commercial Vehicles/Construction Equipment loans.
  • Car, Two wheeler loans.

2. MBS (Mortgage Backed Securitisation)

  • Housing Loans.
  • Mortgage loan.

3. Microfinance Loans.
4. Personal Loans.

The ITSL Trustee-Securitization service offering includes the following:

  • Liaising with Originators, Bankers, Rating Agencies, Arrangers, Legal Counsels and Investors among others.
  • Vetting of legal documents.
  • Ensuring that the transaction is in accordance with the RBI Guidelines and SEBI Guidelines.
  • Providing inputs on the transaction structure/ information memorandum and preparing the spreadsheets (par/premium) for the same.
  • Collecting proceeds from the investors and providing the same to the originator.
  • Issuance of Physical PTC’s and Demating of Securities.
  • Invoking the credit enhancement/liquidity facility in case of shortfall as per RBI Guidelines
  • Regular analysis of servicer reports, ensuring timely and accurate payouts.
  • Monitoring the credit enhancement as stipulated by the rating agency.
  • Sending out monthly reports along with future cash flows factoring prepayments to the investor, originator & rating agency.
  • Investor servicing for responding to any queries/clarifications sought by the investors.
  • Redemption of the PTCs on completion of the payouts.
  • Audit for various trusts on a quarterly basis and issuance of TDS certificates to the beneficiaries wherever TDS implications are involved.