The working group recommends an online loan sales platform

The task force set up for the development of a secondary market for business loans recommended an online loan sales platform for auctioning.

Led by TN Manoharan, chairman of Canara Bank, the working group also said that a participant self-regulatory body should be formed to finalize the detailed terms of the secondary business lending market, including standardization of documentation.

Delay factors

The committee noted that the secondary loan market, in general, had not grown to the scale of its potential and that the factors that had hampered the development of this market were the lack of a sales platform. systematic lending, lack of standardization of documentation and legal factors.

He also recommended the creation of a central register of loan contracts.

Changes in regulations regarding loan securitization and disposal, asset reconstruction, foreign portfolio investment, and foreign commercial borrowing were also recommended.

The committee also said that regulatory changes issued by SEBI, IRDA and PFRDA were needed to allow participation of non-bank entities such as mutual funds, insurance companies and pension funds. .

Comments were requested on the report by September 30.