The securitisation market in India may shrink after the Reserve Bank of India (RBI) on August 21 curtailed credit enhancements on direct assignment deals (bilateral deals), whereby a loan which is sold from the books of an originator (often an NBFC, or a micro-finance institution or other financial institution) to an investor (often a bank, mutual fund or a private equity investor). This will result in fewer banks accessing the securitisation market to meet their priority lending targets. Banks are the biggest investors in this segment.........
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