Filing of Transactions of Securitization

The filing of transactions of securitization is the process of registering the details of a securitization transaction with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). The filing is required under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

What are the details that need to be filed?

The following details need to be filed for a securitization transaction:

  • The name of the securitization special purpose vehicle (SPV).
  • The name of the originator.
  • The name of the trustee.
  • The details of the assets that have been securitized.
  • The amount of the debt that has been securitized.
  • The name of the investors in the securitization.

Who is responsible for filing the transaction?

The securitization SPV is responsible for filing the transaction with CERSAI. The SPV must file the transaction within thirty days of the creation of the SPV.

What are the consequences of not filing the transaction?

If the securitization SPV fails to file the transaction with CERSAI, the transaction may be void. This means that the investors in the securitization may not be able to recover their investments.

MCQs on Filing of Transactions of Securitization

  1. Which of the following is not a detail that needs to be filed for a securitization transaction?
    • The name of the securitization SPV.
    • The name of the originator.
    • The name of the trustee.
    • The amount of the debt that has been securitized.
    • The name of the borrowers.
    • The correct answer is (e). The name of the borrowers is not a detail that needs to be filed for a securitization transaction.
  2. Who is responsible for filing the transaction?
    • The originator.
    • The trustee.
    • The securitization SPV.
    • The investors.
    • The correct answer is (c). The securitization SPV is responsible for filing the transaction.
  3. What are the consequences of not filing the transaction?
    • The transaction may be void.
    • The investors may not be able to recover their investments.
    • The originator may be held liable for the debts of the securitization SPV.
    • All of the above.
    • The correct answer is (d). The consequences of not filing the transaction are that the transaction may be void, the investors may not be able to recover their investments, and the originator may be held liable for the debts of the securitization SPV.