Securities And Exchange Board Of India - Subsection
Section 10(1) in The Securities and Exchange Board of India (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008
(1)The originator and the trustee shall ensure in respect of the debt or receivables assigned to the special purpose distinct entity that the following conditions are fulfilled :(a)the debt or receivables generates or is reasonably expected to generate identifiable cash flows for the purpose of servicing the securitised debt instruments in accordance with the scheme;(b)the originator has a valid enforceable interest in the assets and in the cash flow of the assets prior to the securitisation;(c)the debt or receivables is free from any encumbrances or impediments to their free transfer or the transfer of the rights attaching thereto and their transfer does not constitute an event of default or acceleration trigger under any agreement;(d)the necessary regulatory or contractual permissions or consents have been obtained in order to effect the transfer of such debt or receivables from the originator to the special purpose distinct entity;(e)the originator has not done or omitted to do anything which enables any of his debtors to exercise the right of set-off in relation to such assets;(f)the debt or receivables is transferred at a price arrived at through an arms' length transaction and solely on commercial considerations; and(g)any representations and warranties made by the originator regarding the debt or receivables are duly adhered to.
