These actions address the regulatory arbitrage incentives that led to distortions in the market, and at the same time will drive changes in transaction structures and incentives going forward. Accounting standards are being strengthened to ensure disclosure of off balance sheet entities and tighten derecognition requirements. 7.
Other proposals being considered internationally include a requirements for the originators to retain a portion of each securitization originated and a minimum period of retention of loans prior to securitization to give comfort to ensure adequate due diligence by the originator. Indian securitisation market 8.