Answer-What is the l imit on total exposure of an originator /lender to the securitization exposures bel...

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Answer-What is the l imit on total exposure of an originator /lender  to the  securitization  exposures bel...

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A regulations with respect to the securitization of standard assets, as given by RBI are as follows      Applicability - SCBs, AIFIs, and NBFCs including HFCs RRBs and Cooperative banks are not permitted for securitisation         Limit on total exposure of an originator to the securitization exposures belonging to a securitisation structure or scheme  20      Minimum Retention Requirement MRR requirement        for underlying loans of maturity  24 months or less - 5 of the book value of the loans being securitized        for 24 months and more and loans with bullet repayments - 10 of the book value of the loans being securitized      Assets not eligible for securitisation        Re- securitisation exposures    Structures in which short term instruments such as commercial paper, which are periodically rolled over, are issued against long term assets held by a Special Purpose Entity SPE    Synthetic securitisation     Securitisation with the following assets as underlying      i  revolving credit facilities as underlying    ii Restructured loans and advances which are in the specified period    iii Exposures to other lending institutions    iv Refinance exposures of AIFIs    v Loans with bullet payments of both principal and interest as underlying and,    vi Loans with residual maturity of less than 365 days

What is the l imit on total exposure of an originator /lender to the securitization exposures belonging to a securitisation structure or scheme ?

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