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Hans India
5 days ago
- Business
- Hans India
India's retail asset securitisation rises Rs 52,000 cr in Q1 FY26
New Delhi: The retail asset securitisation market in India has shown steady growth in the first quarter (Q1) of FY26, with a total transaction volume of Rs52,000 crore, a new report said on Wednesday. This includes both pass-through certificate (PTC) issuances and direct assignment (DA) transactions, according to CareEdge Ratings report. The volume represents a 6 per cent growth over the same period previous year. Despite this, the market's stability is a positive sign, driven by strong demand for credit, confidence from investors, and the strategic efforts of originators to diversify their funding sources. One of the most significant milestones in Q1 FY26 was the completion of India's first residential mortgage-backed securitisation (RMBS) deal, carried out by RMBS Development Company Limited (RDCL). This deal was also the first securitisation transaction to be executed on the Electronic Book Provider (EBP) platform, which marks a new chapter in India's securitisation market. This transaction could act as a catalyst for more investors to enter the RMBS sector, potentially boosting innovation and participation in mortgage-backed securities. The move is expected to create more long-term funding opportunities and allow for better risk transfer. Looking at the transaction composition in Q1 FY26, there has been a noticeable shift. PTC transactions now make up 56 per cent of the total volume, which marks a significant change from previous periods when direct assignment (DA) transactions were more dominant. The increase in PTCs likely reflects changing preferences among investors, regulatory factors, and a growing desire for more standardised and tradable financial products. This shift also suggests that originators are looking to attract a broader investor base. Among the PTC issuances, asset-backed securitisation (ABS) products were a major contributor, accounting for around 75 per cent of the total volume. Mortgage-backed securitisation (MBS), on the other hand, remained steady at 10 per cent. A key highlight in Q1 FY26 was the rise in PTC issuances from Microfinance Institutions (MFIs). MFIs contributed 15 per cent of the total PTC volumes, a significant increase from 8 per cent in Q1 FY25. This growth reflects greater stability in asset quality within the microfinance sector, and suggests that investor confidence in this space is on the rise. In the ABS category, vehicle loan financing continued to be a major player, contributing over Rs 14,600 crore, or 51 per cent of total PTC issuances in Q1 FY26.
Hans India
5 days ago
- Business
- Hans India
India's retail asset securitisation market sees 6 pc growth in Q1 FY26
New Delhi: The retail asset securitisation market in India has shown steady growth in the first quarter (Q1) of FY26, with a total transaction volume of Rs 52,000 crore, a new report said on Wednesday. This includes both pass-through certificate (PTC) issuances and direct assignment (DA) transactions, according to CareEdge Ratings report. The volume represents a 6 per cent growth over the same period previous year. Despite this, the market's stability is a positive sign, driven by strong demand for credit, confidence from investors, and the strategic efforts of originators to diversify their funding sources. One of the most significant milestones in Q1 FY26 was the completion of India's first residential mortgage-backed securitisation (RMBS) deal, carried out by RMBS Development Company Limited (RDCL). This deal was also the first securitisation transaction to be executed on the Electronic Book Provider (EBP) platform, which marks a new chapter in India's securitisation market. This transaction could act as a catalyst for more investors to enter the RMBS sector, potentially boosting innovation and participation in mortgage-backed securities. The move is expected to create more long-term funding opportunities and allow for better risk transfer. Looking at the transaction composition in Q1 FY26, there has been a noticeable shift. PTC transactions now make up 56 per cent of the total volume, which marks a significant change from previous periods when direct assignment (DA) transactions were more dominant. The increase in PTCs likely reflects changing preferences among investors, regulatory factors, and a growing desire for more standardised and tradable financial products. This shift also suggests that originators are looking to attract a broader investor base. Among the PTC issuances, asset-backed securitisation (ABS) products were a major contributor, accounting for around 75 per cent of the total volume. Mortgage-backed securitisation (MBS), on the other hand, remained steady at 10 per cent. A key highlight in Q1 FY26 was the rise in PTC issuances from Microfinance Institutions (MFIs). MFIs contributed 15 per cent of the total PTC volumes, a significant increase from 8 per cent in Q1 FY25. This growth reflects greater stability in asset quality within the microfinance sector, and suggests that investor confidence in this space is on the rise. In the ABS category, vehicle loan financing continued to be a major player, contributing over Rs 14,600 crore, or 51 per cent of total PTC issuances in Q1 FY26. This includes loans backed by a variety of vehicles such as commercial trucks, passenger cars, two-wheelers, and construction equipment, the report said. However, the share of vehicle loans has decreased compared to previous quarters, as other asset classes like unsecured personal loans, business loans, and gold loans gained popularity. Unsecured loans alone accounted for 15 per cent of total PTC issuances -- indicating a growing interest from investors in these alternative retail credit segments. In the DA segment, mortgage-backed transactions continued to dominate, making up 67 per cent of the total DA volumes in FY25. Asset-backed DA transactions accounted for 26 per cent, the report stated.
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Business Standard
25-06-2025
- Business
- Business Standard
CEAT to raise ₹500 cr via NCDs, infuse ₹400 cr into Sri Lanka unit
CEAT on Wednesday announced its plans to raise up to Rs 500 crore through the issuance of unsecured non-convertible debentures (NCDs) on a private placement basis. The company's Finance and Banking Committee approved the proposal at a meeting held on June 25. The NCDs will carry a fixed interest rate, determined via bidding on the NSE's Electronic Book Provider (EBP) platform. The instruments will have a tenure not exceeding five years, with annual interest payments and bullet repayment of principal at maturity. The proceeds will be used for ongoing capital expenditure, repayment or replacement of high-cost debt, and working capital requirements. This issuance is in addition to the Rs 250 crore in NCDs already raised earlier. CEAT also plans to infuse up to Rs 400 crore (equivalent in Sri Lankan rupees) into its wholly owned subsidiary, CEAT OHT Lanka, in one or more tranches through equity and/or preference shares. The capital will partly fund the previously announced acquisition of the Camso brand's off-highway construction equipment tyre and tracks business. The subsidiary, incorporated in Sri Lanka, is yet to commence commercial operations. In a separate move, the company's board also approved availing of credit facilities of up to Rs 1,000 crore in one or more tranches for business purposes.
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Business Standard
18-05-2025
- Business
- Business Standard
Sebi mandates e-book mechanism for private debt securities above Rs 20 cr
Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs. The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) platform. Under the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi circular. Earlier, the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or more. Sebi has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific regulatory provision. "An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs," Sebi said on Friday. The regulator said that issuers are required to submit the placement memorandum and term sheet -- containing key terms and conditions -- at least two working days before the issue opens, or three working days in the case of first-time users of the EBP. The documents must disclose the base issue size and any green shoe option, which is capped at five times the base size. Besides, past green shoe allocations are required to be disclosed. Depending on the credit rating of the instrument, issuers can reserve a portion of the issue -- up to 30 per cent for AAA to AA-, 40 per cent for A+/A-, and 50 per cent for others -- for anchor investors, who will have to confirm their participation electronically one day before the issue. Further, unconfirmed amounts will be reallocated to the base issue. To ensure transparency, Sebi said that if multiple bids are received at the same cut-off price, allotments must be made on a proportionate basis. The EBP is required to publicly update detailed bidding and issue-related information on its website by the end of the bidding day or by 1 PM the next day, depending on when the issue closes. Additionally, revised timelines have been introduced to obtain in-principle approval from stock exchanges before T-2 or T-3 for EBP-based issues and before the issue opens for non-EBP issues. These changes will come into effect immediately, except for certain clauses, including those related to anchor investors, disclosures, and reporting, that will be implemented three to six months from the circular's date.
Time of India
18-05-2025
- Business
- Time of India
Sebi mandates e-book mechanism for pvt debt securities above Rs 20 cr
Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs . The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific regulatory provision."An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs," Sebi said on regulator said that issuers are required to submit the placement memorandum and term sheet -- containing key terms and conditions -- at least two working days before the issue opens, or three working days in the case of first-time users of the documents must disclose the base issue size and any green shoe option, which is capped at five times the base size. Besides, past green shoe allocations are required to be on the credit rating of the instrument, issuers can reserve a portion of the issue -- up to 30 per cent for AAA to AA-, 40 per cent for A+/A-, and 50 per cent for others -- for anchor investors, who will have to confirm their participation electronically one day before the unconfirmed amounts will be reallocated to the base ensure transparency, Sebi said that if multiple bids are received at the same cut-off price, allotments must be made on a proportionate EBP is required to publicly update detailed bidding and issue-related information on its website by the end of the bidding day or by 1 PM the next day, depending on when the issue revised timelines have been introduced to obtain in-principle approval from stock exchanges before T-2 or T-3 for EBP-based issues and before the issue opens for non-EBP changes will come into effect immediately, except for certain clauses, including those related to anchor investors, disclosures, and reporting, that will be implemented three to six months from the circular's date.
