Money & Banking
Gold loan companies flocking to securitisation market: CRISIL

According to the ratings agency, number of gold loan originators accessing the securitisation market this year increased to 25 from 21 last year

Mumbai: Ratings agency CRISIL said there is an uptick in debt securitisation by gold-loan companies in the market, which has stabilised after the initial shocks after the new norms were introduced by the central bank in May, reports PTI.


The number of gold loan originators accessing the securitisation market has increased to 25 from 21 in the previous year, it said.


CRISIL in a report also said the securitisation market is adjusting well to the revised securitisation guidelines issued by the Reserve Bank in May.


The agency's senior director Pawan Agrawal said there is a structural shift towards the PTC (pass through certificate) route since the onset of new guidelines.


"The revised guidelines inhibit credit enhancement in direct assignments, thereby diminishing the attractiveness of the scheme, leading to a shift to the PTC route," the report said.


Between May and October, 38 transactions worth Rs3,400 crore were executed as against Rs3,500 crore through an equal number of deals in the same period last year.


Transactions through the PTC route accounted for more than 85% of the total issuances since the guidelines were issued, it added.


Going ahead, Agrawal said the recovery in the numbers can be sustained if certain issues are addressed.


"Clarity on the income-tax liability of the trust set up for the PTC route will enhance confidence of investors. In addition, the guidelines for resetting of credit enhancement will bring down the overall cost of securitisation for issuers, without necessarily reducing the protection for investors. Finally, active steps to enhance liquidity will attract long-term investors to the market," he said.



sivaraman anant narayan

4 years ago

I didn't understand anything about this article. An explanatory article on all aspects of securitisation to the lay reader, by moneylife, would be useful.

Ravi Subramanian's 'Incredible Banker' wins best popular book award

'The Incredible Banker' by Ravi Subramanian has won the Economist-Crossword’s 'best popular book' award for 2011

Mumbai: 'The Incredible Banker' by Ravi Subramanian has won the 'best popular book' award for 2011, instituted by the Economist-Crossword Book Award, reports PTI.


'The Folded Earth' by Anuraddha Roy won the award in the Indian Fiction category while the Indian Non-Fiction award went to 'A Free Man' by Aman Sethi, '17' by Anita Agnihotri and 'The Araya Women' by Narayan jointly won in Indian language translation category, Crossword said in a statement.


The 11th edition of the award had shortlisted nominees like Jeet Thayil whose latest novel 'Narcopolis' was in the Man Booker list this year.


Other authors included Rahul Bhattacharya, Naresh Fernandes, M J Akbar, S Hussain Zaidi, Rashmi Bansal, Ravinder Singh, Suhel Seth, Rujuta Diwekar, Prakash Iyer, Anita Bhogle, Arshia Sattar, Ravi Subramanian, Arunava Sinha, Catherine Thackerama, R Narayan, Ayesha Kidwai, Arupa Katalia, Deepika Phukan, Aniruddha Sen Gupta and B Vinayanm.


Sensex, Nifty may see some more gains: Thursday closing report

The Nifty has to firm up above today’s high for a short-term upmove


Almost all the Asian indices opened positive and so did Nifty and Sensex. The positive opening continued with the latest data showing the growth rate in China’s industrial production and retail sales accelerated in September 2012. Yesterday we mentioned that the Sensex and the Nifty awaits fresh signals and that a close above 5,700 on the Nifty would be mildly bullish. Today the Nifty closed above this level. From here we may see the index making some gains if the benchmark manages to close above today’s high. The National Stock Exchange (NSE) saw a volume of 72.45 crore shares and an advance decline ratio of 956:494

US stocks rose on Wednesday, after the latest data indicated that the US housing market continues to improve.

The Sensex opened in the 18,654 while the Nifty opened at 5,675. Among the morning news to influence Asian markets, China's industrial production increased 9.2% in September from a year earlier, rebounding from a three-year low of 8.9% expansion in August. Retail sales rose 14.2% in September from a year earlier, up from 13.2% growth in August. Ahead of the data, Chinese Premier Wen Jiabao said that the Chinese economy was in reasonable shape in the third quarter and that he expected the country to reach its fiscal-year economic targets

The benchmarks moved into the negative for about an hour during the morning session, when the indices hit their intra day lows. From there the indices continued to rise higher and hit their respective high in the last hour of the trading session. Sensex hit a higher low of 18,576 while the Nifty hit a higher low of 5,651. Both the Sensex and the Nifty hit a four day intra-day high (including today) at 18,807 and 5,723 respectively. The Sensex and the Nifty closed above their respective 20-day moving averages which is a positive for the bulls. Sensex closed at 18,792 (0.97% or 181 points up) while the Nifty closed at 5,719 (1.03% or 58 points up)

The broader indices reported a mixed close today; the BSE Mid-cap index rose 1.16% and the BSE Small-cap index gained 0.86 %.

The sectoral gainers were led by BSE Realty (up 2.58%); BSE Bankex (up 2.09%); BSE Consumer Durables (up 1.50%); BSE Auto (up 1.40%); BSE Capital Goods (up 1.31%). The lone loser was BSE Healthcare (down 0.30%).

Of the 30 stocks in the Sensex, 24 closed in the positive. The key gainers were Tata Power (up 3.13%); State Bank of India (up 2.80%); Tata Motors (up 2%); Hero MotoCorp (up 1.89%) and TCS (up 1.82%). The main losers were Wipro (down 1.97%); Sun Pharma (down 1.73%); Bharti Airtel (down 1.63%); GAIL India (down 0.57%) and ONGC (down 0.20%);

The top two A Group gainers on the BSE were— Century Textiles (up 5.65%) and  Jaiprakash Power Ventures (up 5.49%) The top two A Group losers on the BSE were — Dish TV India (down 3.17%) and Wipro (down 1.97%)

The top two B Group gainers on the BSE were—Cable Corp (up 20%) and Dr Agarwals (up 19.97%). The top two B Group losers on the BSE were— Zylog Systems (down 19.99%) and Tuticorin Alkali Chemicals & Fertilisers (down 9.87%)

Out of the 50 stocks listed on the Nifty, 38 stocks settled in the positive. The top gainers were Jaiprakash Associates (up 4.73%); Axis Bank (up 4.59%); Bank of Baroda (up 4%); HCL Technologies (up 3.69%) and Tata Power (up 2.89%). The major losers were Wipro (down 1.92%); Bharti Airtel (down 1.89%); Sun Pharma (down 1.78%); Grasim (down 0.89 %) and Cairn India (down 0.75 %).

According to Nomura, India's current deficit may soar to a record high in the September quarter on high non-oil imports after briefly narrowing in the June quarter, which could make the rupee susceptible to a sudden reversal in capital inflows.

Japanese media reported that the Bank of Japan may introduce more monetary-easing moves at its next policy meeting.

All the Asian indices ended in the positive with the highest gainer being Nikkei 225 which rose 2% while the least gain of 0.01% was made by Taiwan Weighted.   

A two-day summit of European Union leaders began in Brussels, Belgium today, 18 October 2012 to decide on the bailouts to Spain and Greece.

Back home, foreign institutional investors were net sellers of shares amounting to Rs 68.87 crore on Thursday while domestic institutional investors too were net sellers of equities aggregating Rs 184.56crore.

Agro Tech Foods, a company is engaged in the business of marketing food and food ingredients to consumers and institutional customers,for the September 2012 quarter reported a 6% growth in the standalone net sales grew on year-on-year (y-o-y) basis while its net profit jumped by  16% in y-o-y basis. The stock rose by 4.57% to Rs 433.20 on the Bombay Stock Exchange (BSE)

Kingfisher Airlines has hit the lower circuit filter of 4.76% at Rs 12 on the BSE after the company said that a meeting with the striking employees and the management failed to reach an agreement to re-start flights. Meanwhile, Directorate General of Civil Aviation rejected giving it an approval for the winter schedule of flights.



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