The Genesis of Securitisation in India: Conceptual and Regulatory Framework and Issues

The securitization market in India has grown exponentially over the past few decades, yet there remains a lack of understanding and awareness about its origins, conceptual and regulatory framework, and associated issues. This research paper aims to provide a comprehensive overview of the genesis of securitization in India, examining its historical development, theoretical underpinnings, and the regulatory framework governing the market. The paper begins by providing an overview of the concept of securitization and its evolution globally, before delving into the specific context of India. It explores the role of securitization in the Indian financial system and analyzes its impact on the economy. The paper then examines the regulatory framework that governs securitization in India, highlighting the key legislation and regulations that have shaped the market. Additionally, the paper examines the challenges and issues associated with securitization in India, including the lack of transparency in the market, the impact of regulatory changes on the market, and the potential risks associated with securitization. The research paper concludes by proposing recommendations for future development and growth of the securitization market in India, highlighting the need for greater transparency and regulatory oversight to ensure the market remains sustainable and beneficial for all stakeholders.