MINISTRY OF FINANCE

Reserve Bank of India (All India Financial Institutions – Securitisation Transactions) Directions, 2025

By TEAM CIRCULAR EXPRESS • 28 Nov 2025

👁 9 views

#All India #Contract #Guidelines #Ministry of Finance #Transfer

These directions establish a regulatory framework for securitisation transactions undertaken by All India Financial Institutions (AIFIs) such as EXIM Bank, NABARD, SIDBI, NHB, and NaBFID. The guidelines cover general requirements, criteria for simple, transparent, and comparable (STC) securitisations, and the provision of supporting facilities like credit enhancement and liquidity. It mandates minimum retention requirements (MRR) for originators to ensure a continuing stake in securitised assets. The circular also outlines due diligence requirements for AIFIs acting as investors and specifies disclosure norms for transparency. These directions supersede previous instructions on the subject.

purpose of issuance

To establish a framework for securitisation transactions by AIFIs.

Most Important Details

The directions mandate Minimum Retention Requirements (MRR) for originators, define criteria for Simple, Transparent, and Comparable (STC) securitisations, and set standards for credit enhancement, liquidity, and underwriting facilities. It also requires AIFIs acting as investors to conduct thorough due diligence and mandates specific disclosure formats for securitisation transactions.

issue for which issued

Regulatory Directions for Securitisation Transactions

is it guidelines or office order, or office memorandum

Directions

purpose of issue

To regulate securitisation activities of AIFIs and protect investor interests.

issue for which issues

Securitisation Transactions

is it guidelines or circular or for some action

Directions

All the Most Important details in the circular, its purpose it serves

The circular sets out the rules for securitisation, including asset eligibility, MRR, STC criteria, and disclosure requirements for AIFIs.