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.

Key Facts

  • 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.