Concept of Securitisation and its Role in Promoting Economy and Capital Markets

25 Pages Posted: 16 Aug 2011

See all articles by Prabhakar Krishnamurthy

Prabhakar Krishnamurthy

Central University of Jammu; Humanistic Management Network; IIIT (D&M); Anna University

Date Written: September 13, 2010

Abstract

It is widely believed that securitisation offers tremendous opportunities, and significant benefits, in our country — to issuers and investors, and, from a broader social and Economic perspective, to the citizens and business organizations. Despite its potential, and notwithstanding recent growth, securitisation remains at a relatively early stage of development, and is still evolving as a mainstream capital markets financing mechanism. The understanding, usage and acceptance of Securitisation varies widely. A basic reason for this may be the relative novelty of securitisation. It has only recently been introduced in our country and does not enjoy the same level of familiarity and recognition as other, more traditional forms of debt and equity financing, among issuers, investors, governmental policymakers or the public. This paper examines the definition of securitisation and various terms used in the process of securitisation. The concept of securitisation is not static but dynamic. It constantly evolves and it is called as financial engineering. Its impact on overall economy, risks and benefits are examined. The paper on securitisation is concluded by its evaluation.

Keywords: securitisation, economic developement

JEL Classification: A00

Suggested Citation

Krishnamurthy, Prabhakar, Concept of Securitisation and its Role in Promoting Economy and Capital Markets (September 13, 2010). Available at SSRN: https://ssrn.com/abstract=1909364 or http://dx.doi.org/10.2139/ssrn.1909364

Prabhakar Krishnamurthy (Contact Author)

Central University of Jammu ( email )

Bagla
Samba
Jammu, Jammu and Kashmir 181143
India
08082197957 (Phone)

Humanistic Management Network ( email )

St. Gallen
Switzerland

IIIT (D&M)

IIT Campus
Chennai, Tamil Nadu 600036
India

HOME PAGE: http://www.iiitdm.iitm.ac.in

Anna University

Chennai, Tamilnadu, Tamilnadu 600025
India

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