For securitisation companies

♤ Transparency in working of SCs - The RBI has recently taken various steps to improve the

system’s ability to deal with distressed assets of banks and financial institutions.

o The Reserve Bank has issued various guidelines relating to the operations of SCs/RCs as also to make transactions between them and banks more transparent for prevention of collusions with promoters in buy back deals.

♤ Increased FDI cap - foreign direct investment cap on SCs/RCs has been increased from 49 per cent to 74 per cent under the automatic route.