New Delhi: The Reserve Bank of India (RBI) on Wednesday announced the setting-up of a committee to work for the development of housing finance securitisation market in the country under the chairmanship of Harsh Vardhan, Senior Advisor with Bain & Co.
An RBI notification said that the committee would review the existing state of mortgage-backed securitisation in India, including the current regulations, and would make specific recommendations on aligning the same with international norms.
The six-member panel would also identify the steps required for standardisation of mortgage-backed securitisation practices such as conforming mortgages, mortgage documentation standards, digital registry for ease of due diligence and verification by investors.
The other members of the committee are Chandan Sinha, Additional Director for Learning and Admin at CAFRAL, Sanjaya Gupta, MD, PNB Housing Finance, Naresh Thakkar, MD and Group CEO of ICRA, Pranjul Bhandari, Chief India Economist at HSBC and Bindu Ananth, the chair and trustee of Dvara Trust.
The panel's terms of reference include analysis of "the prevalent structures including legal, tax, valuation and accounting related issues, and suggest necessary modifications to address the requirements of both originators as well as investors".
The committee shall submit its report by the end of August 2019, said the notification.