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RBI constitutes task force on development of secondary market for corporate loans

30 May 2019 Evaluate

In order to achieve the development of a secondary market in corporate loans, the Reserve Bank of India (RBI) has constituted a task force to suggest policy and regulatory interventions.

Task Force will review the existing state of the market for loan sale/transfer in India as well as the international experience in loan trading. It will also make recommendations on required policy/regulatory interventions for facilitating development of secondary market in corporate loans, including loan transaction platform for stressed assets.

Further, the task force will also make recommendations for the creation of a loan contract registry to remove information asymmetries between buyers and sellers, its ownership structure and related protocols such as standardization of loan information, independent validation and data access.