What we do
- In securitisation, the assets known as Asset Backed / Mortgaged are assigned to Special Purpose Vehicle (SPV) who issues PTC’s to investors in such SPVs.
- Catalyst Trusteeship Ltd is the leading Trusteeship Company for Securitisation and holds substantial market share of the entire industry. A typical process of asset securitization involves sale of specific receivables to a Special Purpose Vehicle (“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 on the transaction structure/ information memorandum and preparing the spreadsheets (par/premium) for the same.
- Collecting proceeds from the investors and providing the same to the originator.
- Issuance of Physical PTC’s and Dematization of Securities.
- Invoking the credit enhancement/liquidity facility in case of shortfall as per RBI Guidelines
- Call for periodic reports from the sellers of the receivables or the assignors
- Regular analysis of servicer reports, ensuring timely and accurate payouts.
- Monitoring the credit enhancement as stipulated by the 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 securitised debt instruments holders
- Exercise due diligence to ensure compliance by the sellers/assignors, with the provisions of the Companies Act, the listing agreements (if applicable), the trust deed or other applicable laws.
- Investor servicing for responding to any queries/clarifications sought by the investors.
- Redemption of the PTCs on completion of the payouts. Audit for various trusts on a quarterly basis and issuance of TDS certificates to the beneficiaries wherever TDS implications are involved
- Awarded Best Trustee of the year in 2017 & 2018 in ‘Securitization Summit’ organised by Indian Securitisation Foundation.
- Number of years in the securitisation industry: 4.5 years
- Total number of transactions during the year 2017-18: 600 transactions.
- Total value of the receivables handles during the year 2017-18: Rs 72,400 crores
- Total value of the receivables handled during the lifetime: Approx Rs 1,80,000 crores
- Total value of the receivables currently under management: Rs 80,000 crores
- Innovative structure handled during the year: Vendor Receivable, CLO, Education Loan, Consumer Durables etc.