Conceptual Analysis of Securitization

“Under investment, what is comfortable is seldom profitable. ” The process of securitization has become an efficient technique for the liquidation of assets by way of dividing risks into marketable securities. In recent years, this industry has gained importance in light of its advantage of allowing cash flow in the market which in turn results in easy lending to the borrowers, thus, making this industry an important pillar in the banking business. Securitization is a concept of finance that has an impact on the economy, just like any other industry of finance, this industry is also regulated by the central government and other important bodies. These regulations become important to promote securitization during adverse events and in recent years, there have been several ups and downs in this industry, one of the major being, the coronavirus which made the industry struggle to adapt to the adversity of the economy. Considering the importance of this sector, the students wish to undertake a conceptual analysis of securitization in the Indian market by way critically analysing the recent development in the given industry. This analysis aims to present a holistic picture of the process of securitization and also unfolds certain obstacles in the same, lastly, the students have concluded by presenting certain policy recommendations for this ever-lasting industry to grow and adapt to the changing environment in the securities market.