Securitization Trustee

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 Demating 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.

Key Roles

During the year 2015 Catalyst Trusteeship Ltd. had captured more than 80% of the market share.

  • Reporting and maintaining comprehensive records.

  • Collection and payouts.

  • Enforcement action where applicable.

How can we help you?

Contact us at the Catalyst office nearest to you or submit a business inquiry online.