Money & Banking
Securitisation market in India grew 45% in FY 2016
The Securitisation Summit held in Mumbai witnessed a gathering of the market players; brain storming the prospects, challenges, issues, concerns and way forward of the securitisation industry in India. The Summit, witnessed one of the critical rendezvous of the stakeholders in the securitisation industry in India.
 
The Indian securitization market is poised to be looking up this year and hereafter, as the tax issues concerning securitization have largely been addressed. Also, foreign portfolio investors have been permitted (notification may be out soon, while the draft notification is out in the public domain) to invest in securitized debt instruments. The option for foreign investors to invest in securitization allows overseas financial entities to take a share of the lucrative, fast expanding retail borrowing space in India, without having to formally get into business in India. Public sector banks have not been active in the securitization space, except as buyers of priority sector receivables. 
 
All these were discussed at length at this one-day program, the key highlights of which have been presented below:
  • The securitisation market in India grew by 45% in the FY 2016.
  • Volumes of Asset Backed Securitisation increased by 51%.
  • MFI’s continue to dominate the ABS originations.
  • Priority sector lending continues to be the major driver for securitisation volumes in India.
  • The tax issues which was major hurdle for securitisation in India has been taken care off under the Union Budget 2016.
  • With the ease in the taxation norms, the demand for Non Priority Sector Lending portfolios is likely to rise.
  • Pricing of instruments will be the determining factor between PSLCs and securitisation.
  • The main reason for lagging behind of RMBS happens to be stamp duty and registration of documents.
  • The full report can be viewed here.
The event was organised by Vinod Kothari Consultants in association with the Indian Securitisation Foundation. 

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COMMENTS

Paddy Nair

1 year ago

Bad debts are not due to Raghuram Rajan.We need professional technocrats like him NOT bureaucrats if we are to manage our monetary policy well.The world is to complex now and bilateral & multilateral agreements may mess up our inflation,currency management & deficits

Ramesh Poapt

1 year ago

NPA,Bad debts, curse for banks but.......... windfall gain/ blessings/profit/growth for securitisation co.s! like sickness treatment for
doctors!

Modi calls for 10 crore people to be drawn into tax net
Prime Minister Narendra Modi on Thursday called for 10 crore people to be brought into the tax net, up from the current 5.3 crore, in a bid to expand the revenue base.
 
"There are a total of 25 crore households in the country, out of which 10 crore have non-agricultural income. The Prime Minister, in his address, called for the expansion of the tax net to 10 crore people," said Revenue Secretary Hasmukh Adhia.
 
Adhia, however, did not give any timeline to reach the 10 crore tax payers base.
 
The Prime Minister also asked the taxmen to remove the fear of harassment from the minds of people and advocated what he termed as RAPID -- revenue, accountability, probity, information and digitisation.
 
"The Prime Minister gave the RAPID formula, which he said are the five pillars of tax administration," Minister of State Jayant Sinha told reporters.
 
The Prime Minister also called for bridging the trust deficit between the taxpayer and tax department, he said.
 
Sinha and Adhia were briefing the media after an address by Modi at the two-day Rajasva Gyan Sangam - Annual Conference of Tax Administrators 2016 of top officials with the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC). The conference will prepare a roadmap for tax officials for the current fiscal.
 
The revenue secretary said that Modi heard various suggestions from officials of CBDT and CBEC. The officials suggested formulation of a tax facilitation act and also conveyed their dilemma between tax enforcement and tax friendly measures, he said.
 
Sinha however clarified that the tax officials should not see any trade-off between the two.
 
In his address, the Prime Minister also emphasised on the CBDT and CBEC moving towards digitisation.
 
"Out of the total returns, 90% returns are filed through e-filing. And out of that 67%  income tax returns happen via the online route," Sinha said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Your smartphone loses half of its value in a month!
Planning to buy a new smartphone? Remember that the device may lose half of its value in a month which is even faster than your car, says an interesting study.
 
While cars typically lost 20% of their value a year after being driven off, money-draining smartphones went down up to 65% of their value in just a month of being released, musicMagpie.co.uk reported on Thursday.
 
The findings showed that only iPhones could retain their value much better than android-based devices.
 
While the iPhone 4 continues to retain 39% of its value even five years after its launch, the iPhone 6 (16 GB) has managed to keep 50% of its 539 British pounds market value a year after its release.
 
However, iPhone 5 showed a significant depreciation, losing 66% of its value after eight months, the report stated.
 
The highly anticipated Samsung Galaxy S4, which released in 2014 lost half of its value within two months of appearing on the market.
 
That's nearly a £300 loss off its original selling price of £579, the study said.
 
HTC One M9 has suffered the worst in the android sector. It was sold for 579 British pounds when released in March 2015 but lost a staggering 65% of its value in just a month.
 
Phones go down in value because better, faster and technologically superior models replace them.
 
Demand for a certain phone model can also affect its popularity and consequently depreciate its value, the report concluded.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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