Nature of work
- Under ‘Securitization’, the assets are assigned to a Special Purpose Vehicle (SPV). Pass Through Certificates are issued by the SPV to investors in the SPVs.
- Catalyst Trusteeship Limited is the leading Trusteeship Company for Securitization and holds substantial market share of the entire industry. A typical process of asset securitization involves sale of specific receivables to a SPV. While globally different forms of entities are used as SPVs, in India Trusts make up the most popular form of SPV structure.
Process & Execution
- Liaising with Originators, Bankers, Rating Agencies, Arrangers, Legal Counsels and Investors among others.
- Vetting of legal documents.
- Opening and operating issue proceeds / collection & payout account.
- Providing inputs for the transaction structure / information memorandum and preparing the spreadsheets (par / premium) for the same.
- Collecting proceeds from investors and providing the same to the originator.
- Issuance of Physical PTC’s and Dematerialization of Securities.
- Invoking the credit enhancement / liquidity facility in case of shortfall as per RBI Guidelines.
- Call for periodic reports from Sellers of the receivables or the Assignors.
- Regular analysis of service reports, ensuring timely and accurate payouts.
- Monitoring the credit enhancement as stipulated by rating agency.
- Sending out monthly reports along with future cash flows factoring prepayments to the investor, originator & rating agency.
- Ensure on a continuous basis that the trust property is available and adequate at all times to pay the securitized debt instruments holders.
- Exercise due diligence to ensure compliance by the Sellers / Assignors, with provisions of the Companies Act, the listing agreements (if applicable), trust deed or other applicable laws.
- Investor servicing for responding to any queries / clarifications sought by Investors.
- Redemption of PTCs on completion of payouts.
- Audit for various trusts on a quarterly basis and issuance of TDS certificates to the beneficiaries, as applicable.
- Awarded ‘Best Trustee’of the year in 2017 & 2018 in ‘Securitization Summit’ organized by Indian Securitization Foundation.
- Seven plus years in the Securitization industry
- Number of transactions handled: 2305
- Aggregate value of the receivables currently under management: Rs 9,00,000 crores
- Innovative structures handled during the year: Vendor Receivables, Collateralized Loan Obligations, Education Loans, Consumer Durables etc.