IDBI Trusteeship Services Ltd is the leading Trusteeship Company for securitization. IDBI Trusteeship holds a substantial market share of the entire industry. A typical process of asset securitization involves the 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 the following asset classes.
- ABS (Asset Backed Securitisation)
- Commercial Vehicles/Construction Equipment loans.
- Car, Two-wheeler loans.
- MBS (Mortgage Backed Securitisation)
- Housing Loans.
- Mortgage loan.
- Microfinance Loans.
- 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 the shortfall as per RBI Guidelines
- Regular analysis of servicer reports, ensuring timely and accurate payouts.
- Monitoring 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.