India Securitization Summit 2015-NISM’S 4th International Conference on Securitization
India Securitization Summit (ISS) is an annual event for the Indian Securitization Industry spearheaded by National Institute of Securities Markets (NISM). ISS 2015 was the 4th edition of NISM’s International Conference on Securitization. Like all earlier summits, ISS 2015 was also a landmark event. The genesis of the summit was to bring the market participants of the Indian Securitization Industry on a common platform, to discuss relevant issues and offer credible suggestions.
Mr. D R Dogra, MD & CEO, CARE Ratings, Mr. Sandip Ghose, Director, NISM, Mr. R Gandhi, Dy. Governor, RBI, Mr. Arun Sharma, CIO, IFC, Washington DC and Mr. Rajesh M. Pawar, Director, I-Peritus
Mr. Sandip Ghose, Director, NISM, welcomed the Guests of Honour Mr. R Gandhi, Dy. Governor, RBI and Mr. Arun Sharma, CIO, IFC and also welcomed all the eminent speakers and participants of the conference.
Mr. Rajesh M. Pawar, Director, I-Peritus had summarized the highlights of the three previous summits on Securitization.
Mr. Arun Sharma, CIO, IFC delivered the keynote address highlighting the importance of securitization industry. He has given a complete overview of the securitization industry on global as well as Indian perspective. He mentioned that securitization has the ability to support the world in delivering on credit and intermediation, in an effective, transparent and very efficient manner. He emphasized the words of Mr. Ghose, Director, NISM that securitization is a link between ‘Credit and Capital Market’. He told, securitization is like ‘root canal surgery’ where, thorough due diligence is required. He mentioned that if proper due diligence is done, investment in securitization could result in zero loss besides earning a reasonable return.
Mr. R Gandhi, Dy. Governor, RBI delivered the inaugural address and emphasized the role securitization in the financial markets and brought the regulators perspective for this asset class. He mentioned that it helps in greater alignment of the interest of the originator and the investors and retention of the skin in the game by the originators. He mentioned that the “Indian securitization market is reviving up for a take-off”. He mentioned that there is close coordination between RBI and SEBI for the development of securitization industry in India.
Mr. D R Dogra, MD & CEO, CARE Ratings provided the detailed outlook of the summit emphasizing the scope and expectations from various panel discussions of this summit.
The Speakers were the persons of eminence including senior professionals having experience of handling key positions in Financial Markets.
The conference had four Technical Sessions on the following areas:
Technical Session I: ‘Review the market conditions, potential growth, operational and regulatory issues’
Panelists of Technical Session – I: Mr. Rajinder Kumar, CGM, RBI, Ms. Sandhya Iyer, Partner, Vaish Associates, Mr. N D S Chari, Zonal Head South and West, SREI Infrastructure Finance Ltd. Mr. Lavesh Sardana, Sr. VP, HDFC Bank and Mr. Rajesh Mokashi, Dy. MD, CARE Ratings (Moderator).
In this session there was a detailed deliberation on the securitization market existing in various developed countries as well as in India. It was mentioned that the securitization market in India is gradually evolving. The session also discussed on ISOCO criteria for identifying simple, transparent and comparable securitization process. The session further emphasized on reviewing of the existing restrictions on securitization.
Technical Session II: ‘The role Securitization could play in managing the retail NPA in Banks’
Panelists of Technical Session – II: Mr. Arun Sharma, CIO, IFC (Moderator), Dr. K Balu, GM, RBI, Mr. Sanjay Tibrewala, CFO, Phoenix ARC, Mr. N S Venkatesh, ED, IDBI Bank and Chairman FIMMDA, Mr. Jaya Sankar, Director, Alternative Investment Advisory
This panel discussed in detail regarding the importance of securitization in managing the NPAs of the Banks. It was emphasized that the economic value of NPAs can be done through securitization.
Technical Session III: ‘To Identify and recommend the possible structures to securitize asset classes like Residential Mortgages, SME Loans, Cash Flow Securitization for utilities’
Panelists of Technical Session – III: Mr. V Ravi, CFO, Mahindra Finance, Mr. Devang Gada, MD, Sattva Consultants, Prof. Sunder Ram Korivi, Dean, SSE, NISM (Moderator), Mr. R Sivakumar, VP & Head Fixed Income & Products, Axis Mutual Fund, Mr. Amitava Mehra, CEO, IMGC
This session was very interesting and helpful for the growth and development of the Securitization Industry in India. It was mentioned that securitization is the link between the real market and the financial market, therefore it has a very crucial role to play. In the Indian context, presently, securitization market is an institutional market, steps are required to increase retail participation.
Technical Session IV: ‘How to improve transparency in the securitization market and building an investor information eco-system with data and analytics’
Panelists of Technical Session – IV: Mr. Rajesh M. Pawar, Director, I-Peritus, Mr. Mritunjay Bhanot, VP – Analytics Product Development and Delivery, TransUnion Software Services Pvt. Ltd., Mr. Sujit Prasad, CGM, SEBI (Moderator), Mr. Neeraj Kulshrestha, Chief of Business Operations and Listing, BSE and Mr. Amandeep Chopra, Group President & Head Fixed Income, UTI Mutual Fund
In this session there was a detailed discussion on the transparency of the industry, for which it was mentioned that there may be a centralized reporting platform, the reporting may be in a standardized format and the data should be easily accessible.
The conference was addressed by a panel of 25 eminent speakers and around 160 participants from the industry attended the conference. All the panel discussions were very interesting and practical in nature and the participants had actively participated in the question and answer sessions throughout the conference.
The conference was conducted jointly with Credit Analysis & Research Ltd. (CARE) Ratings,
Dewan Housing Finance Corporation Limited (DHFL), International Finance Corporation
(IFC), I-Peritus, State Bank of India (SBI) and SREI.
The outcome of the conference will come in the form of a detailed report, which will be published and circulated among various market participants and will also be submitted to the regulators in the form of a white paper for their consideration.
