Securitization is a structured mechanism utilized & envisaged by Banks, NBFCs & Financial Institutions, as a ring-fenced & bankruptcy remote sale of a financial asset or a pool of such homogenous assets (Asset Pool) in return for immediate cash payments. It is an effective method actively used by Non-Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) & Microfinance Companies (MFCs), to cash-in on illiquid assets in order to enable finance of future lending activities at an economic cost of funds.
In Securitization, the underlying asset pool is transferred to a Special Purpose Vehicle (SPV) which in turn issues securities known as Pass Through Certificates (PTCs) to the Investors, mostly Banks, in exchange of incoming cash investment. While globally SPVs are set up in different forms, SPVs in India are largely set up as Trust. We act as Trustee to the said SPV. We act as a Securitization Trustee for transactions involving.
1. Asset Backed Securitization (ABS)
2. Mortgage Backed Securitization (MBS)
3. Micro Credit Backed Securitization
As a Securitization Trustee, we assist you in:
- Drafting & Vetting of Legal Documents.
- Compliance with RBI Guidelines and SEBI Guidelines.
- Regular analysis of Servicer reports.
- Ensuring timely and accurate payouts.
- Co-ordination amongst Originators, Arrangers, Legal Counsels, Investors, Servicers, Bankers & Rating Agencies among others.
- Credit enhancement/liquidity facility invocation (in case of shortfall) as per RBI Guidelines.
- Enabling smooth flow of proceeds from Investors to the Originator.
- Quarterly Audit for various trusts along with issuance of TDS certificates to the beneficiaries wherever TDS implications are involved.
- Monitoring the credit enhancement as stipulated by the rating agency.
- Periodic (monthly / quarterly reports) along with future cash flows factoring prepayments to the investor, originator & rating agency.
- Prompt response to Investor queries & clarifications sought.
- Redemption of the PTCs on completion of the payouts
Benefits to Originators & Investors
Our inputs on transaction structure/ Information Memorandum along with detailed financial modelling. Expeditious work flow to achieve time efficient:
- Execution of legal documents
- Trust set-up & due dilligence
- Issuance of PTCs in physical & dematerialized
- Opening & management of Collection & Payout Account
In-house system generated reports for:
- Servicer
- Originator
- Credit Enhancement
- Collections & Payout Account
- TDS Compliance & Certificates
Timely reminders to ensure compliance with periodic reports to be submitted.
We Also Offer :
Debenture TrusteeMumbai Office
Delhi Office
Hyderabad Office
Testimonials
REC Limited
Dear Beacon Trusteeship Ltd Team,
We are writing to express our appreciation for outstanding work performed by Beacon Trusteeship Limited bond issuance process of REC limited.
Your tireless commitment towards utmost efficiency in work & compliance with all relevant regulatory requirements have been instrumental in the success of the bond issuance process of REC ltd. Your contribution & dedication have not gone unnoticed & we would like to acknowledge the impeccable efforts of the Beacon Trusteeship Limited team through this letter. Looking forward to continuous association in future endeavors.
Date: 26/12/2023
Sumit Mehra
Cheif Manager (Finance)
Power Finance Corporation Ltd
Dear Team Beacon
We are writing to express our appreciation for service provided by Beacon trusteeship ltd throughout the recent bond issuances of Power finance Corporation limited(“PFC”). The bond issues were successfully completed & the entire exercise was smooth & seamless. We appreciate the effort put in by the entire Beacon Team. Kindly convey our acknowledgment to all involved for their concerted efforts. Looking forward to continuous support and more opportunities to work together.
Date: 6/12/2023
Thanking You
Vishna Ram Jakhar
Chief Manager (Finance)
NTPC Limited
Dear Team Beacon,
We are writing to express our appreciation for the services provided by Beacon Trusteeship Limited throughout the recent bond issuances of NTPC Limited. The bond issuances were successfully completed,and the entire exercise was smooth and seamless. We appreciate the efforts put in by the entire Beacon team.
Kindly convey our acknowledgement to all involved for their concerted efforts. Looking forward to the continuous support and more opportunities to work together.
Date: 20/09/2023
Thanking You
Anita Srivastava
Additional General Manager (Finance)
U.P Power Corporation Ltd
Dear Beacon Trusteeship Ltd Team,
We are writing to express our heartfelt appreciation for expectational services provided by Beacon Trusteeship Ltd through the bond issuance process with U.P Power Corporation Ltd. Your team’s dedication and expertise played a pivotal role in the success of issuance. Your meticulous attention to detail, unwavering commitment to regulatory compliance, & prompt responsiveness to where nothing sort of exemplary.
It is clear Beacon Trusteeship plays emphasis on professionalism & excellence. Your team’s expectational performance not only meet but exceeded our expectations making this partnership a true success.
Date: 14/12/2023
Thanking You
Neeraj Chaurasia
Dy General Manager (Finance)
Andhra Pradesh State Beverages Corporation Ltd
Dear Beacon Trusteeship Ltd Team,
We are writing to express our heartfelt appreciation for expectational services provided by Beacon Trusteeship Ltd. throughout the bond issuance process with Andhra Pradesh state Beverage corporation Limited.
Your Team’s dedication & expertise played a pivotal role in the success of issuance. Your meticulous attention to detail, Unwavering commitment to regulatory compliance & prompt responsiveness were nothing short of exemplary. It is clear Beacon Trusteeship Ltd places a high emphasis on professionalism & excellence.
Your team's performance meets our expectations, making the partnership successful.
Date: 08/12/2023
Thanking You
Beacon in Media
Infrastructure-wise, Gujarat is exceptional, boasting 42 ports, including the major port of Kandla, & 17 operational airports. This robust infrastructure is further underlined by its top ranking in logistics & export preparedness. The state's economy is diverse, with a strong presence in sectors like petrochemicals, pharmaceuticals, automobiles, gems and jewelry, and now a growing focus on computer software and hardware. Gujarat accounts for a significant portion of India’s pharmaceutical manufacturing and exports, with an extensive base of over 3500 licensed private players. Additionally, the region has emerged as a key hub for the automobile industry, attracting major players, and contributing significantly to India's transport equipment output
Date: 27/1/2024
Pratapsingh Nathani
Chairman & Managing Director
BeaconTxn is designed to secure retail transactions, providing peace of mind to both parties involved in a transaction, Our platform leverages our strong background in high-volume escrow services to make retail transactions safer and completely hassle-free
Date: 26/1/2024
Pratapsingh Nathani
Chairman & Managing Director
Whilst in the Securitization vertical, Beacon processes $3 billion worth of Securitized pools on a month-on-month basis, which includes Direct Assignment, Pass-Through Certificates (PTC) and Securitised Debt Instruments (SDI), the ProSec platform has surpassed the $3 billion volume mark.
Date: 22/12/2023
Pratapsingh Nathani
Chairman & Managing Director
As a real estate investor, diversifying your portfolio often involves considering various asset classes, and Non-Convertible Debentures (NCDs) can be an enticing proposition. When venturing into Real Estate Investments one must consider to evaluate the option of investing into the Real Estate Sector through the NCD route and furthermore , you should preferably opt for listed debentures over unlisted ones. When you invest into listed real estate debt, not only does a Debenture Trustee act as your financial guardian in this space, but listed debentures also bring an added layer of protection through SEBI (Securities and Exchange Board of India) guidelines.
Date: 5/9/2023
Pratapsingh Nathani
Chairman & Managing Director
The RBI's steadfast monetary policy, keeping the repo rate at 6.5%, indicates a strategic balancing act between curbing inflation and bolstering economic growth. With the inflation target yet to meet the 4% benchmark, the RBI, under Governor Shaktikanta Das, leans towards a cautious yet growth-oriented policy. The RBI's growth forecast for India at an optimistic 7% points to a confidence in domestic economic resilience, outpacing international projections. Alongside maintaining economic stability, the RBI has made strategic enhancements to the Unified Payments Interface (UPI), raising the transaction cap to Rs 5 lakhs for payments to hospitals and educational institutions, and up to Rs 1 lakh for recurring transactions such as credit card bills, mutual fund subscriptions, and insurance premiums. These increases are set to bolster high-value payment convenience through UPI, with an additional authentication layer for transactions exceeding Rs 1 lakh, thereby supporting larger ecosystem sectors and advancing digital payment adoption.
Date: 12/12/2023
Pratapsingh Nathani
Chairman & Managing Director
