The National Institute of Securities Markets (NISM) hosted the first ever Summit on Securitization in India, the INDIA SECURITIZATION SUMMIT 2009, on July 08, 2009 at the Grand Hyatt, Kalina, Santacruz, Mumbai.

The Indian Securitization Industry holds potential to remain an attractive source of capital for the Indian Financial Industry. Today, this market has been acutely affected by sentiments of global sub‐prime crisis. Further, the intrinsic inadequacies in the Indian debt markets have also compounded to the shrinking trade volumes and numbers. The India Securitization Summit 2009 offers an opportunity to review the industry, the structure, the inefficiencies, the potentials and the future.  Securitization in India holds large potential as an alternative financing option and could be a driver of economic growth.

Objective of the Summit – Need for a white paper:
The India Securitization Summit 2009, discussed the challenges faced by the industry. A white paper is in the making to direct the attention to issues that are constraining the growth and development of this market, to drive attention to the issues raised by the players in the securitization markets, highlighting the opportunities and action that can be taken. The white paper would be soon submitted to SEBI, RBI and Ministry of Finance. The discussants were drawn from issuers, investors, regulators, rating agencies, and information & risk consultants. 

Regulatory Issues Discussed:  

Key challenges facing the Securitization market:

The key challenges facing the securitization markets include:

Speakers in the summit:

A. Key note address by Mr. Prashant Saran Whole Time Member SEBI

B. Panel I: Regulatory Challenges Evolution & future of Indian ABS Markets

The Panel would be led by a Regulator or a Law Firm and would focus on the rules and regulations, rationale for the same. The panel would also discuss on the main features of the regulations and rationale for the same, while protecting the interests of investors and market players.

    a. Mr. C.K.G. Nair (Director, MoF)
    b. R.K. Nair (ED, SEBI)
    c. M.P. Baliga (CGM, RBI)
    d. R.V. Verma (ED, NHB)
    e. Ms. Sandhya Iyer (Vaish Associates)

C. Panel II:Developing the Indian Securitization Markets Building liquidity, increasing attractiveness

The panel would discuss topics that could help improve the issuances in the Indian Securitization markets. The panel would discuss issues in pool performance, rating, credit enhancements and guarantees and transparency to increase attractiveness. The panel would discuss the constraints - regulatory and operational, from the perspectives of the issuers.

    a. Mr. Kiran Joshi, Tata Capital
    b. Mr. Parag Sharma/Mr. Shridar, Shriram Transport
    c. Mr. V. Ravi, Mahindra Finance
    d. Mr. Sudipto Basu, ICICI

D. Panel III: Investor perspectives How attractive are the ABS products and what are the perceived risks 

The panel would discuss on investors perspectives on the Indian issuances. The discussions would focus on the recent meltdown in the Indian markets, actual and perceived risks, building an efficient secondary market, increasing transparency on deal performance, regulatory and tax related issues.  

    a. Mr. Rajesh Mokashi, CARE
    b. Mr. Ashok Motwani, IDBI Bank
    c. Mr. Rajagopalan, HDFC Bank
    d. Mr. Chaitanya Pande, ICICI Pru MAC

E. Panel IV: Securitizing Indian Assets Expanding existing asset classes, adding emerging asset classes

This panel would discuss issues related to existing asset classes, including Sub-Prime, Commercial Vehicle, Residential Mortgages, Credit Cards and Personal Loans. The panel would also include emerging asset category of Micro Finance. This panel would highlight on the attractiveness of the asset classes and would address how the asset classes would perform in the near future.  

    a. Mr. R.V.Verma, NHB
    b. Mr. Dilli Raj, SKS Finance
    c. Mr. Devang Gada, Standard Chartered
    d. Mr. Milind Patel, IL&FS

NISM plans to organize the India Securitization Summit as an annual event to be held in the second quarter of every year.