a new Bill is also proposed to be introduced in the Parliament to strengthen creditors’ right to foreclosure and enforcement of securities by banks and financial institutions. This Bill will also enable securitisation of money locked up in long-term loans, thereby further strengthening the legal basis for transactions in such new debt securities.
For development of the market and to encourage retail participation, particularly by mid-segment investors like urban co-operative banks, NBFCs, trusts, etc., non-competitive bidding scheme allowing 5 per cent of the amount issued under select auctions by Government was introduced in January 2002. The amount could be revised to 10 per cent keeping in view, the response.