Three months after govt’s guarantee scheme, NBFCs still awaiting funds

Lack of clarity on whether to treat the transactions between the banks and NBFCs as ‘securitisation’ deals or as ‘pass-through certificates’ (PTC) is also impeding any movement, given that these have accounting implications. While ‘securitisation’ allows the entire profit to be booked upfront, in a PTC the profits must be booked over the tenor of the loan.

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