Write notes on the following: Securitisation

Securitisation The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 defines "securitisation" as - acquisition of financial assets by any securitisation company or reconstruction company from any originator, whether by raising of funds by such securitisation company or reconstruction company from qualified institutional buyers by issue of security receipts representing undivided interest in such financial assets or otherwise. Securitisation is the process of conversion of existing assets or future cash flows into marketable securities. Securitisation deals with the conversion of assets which are not marketable presently into marketable ones. Thus, it is conversion of illiquid assets into liquid assets.