'Securitisation' under the SARFAESI Act refers to the acquisition of financial assets by which entity, funded by issue of security receipts?

Securitisation under the SARFAESI Act means the acquisition of financial assets by a securitisation company or reconstruction company from any originator, whether by raising funds from qualified buyers through the issue of security receipts representing an undivided interest in such financial assets, or otherwise. It converts illiquid loan assets into tradable securities. This process helps banks offload non-performing or other assets and frees up capital, while qualified investors gain exposure through security receipts.