Regulation 15 - Servicers - Securities And Exchange Board Of India (Issue And Listing Of Securitised Debt Instruments And Security Receipts) Regulations, 2008

Servicers. 15. (1) A special purpose distinct entity may appoint either the originator or any other person as servicer in respect of any of its schemes, subject to the following, namely:- (a) the trustees shall ensure that the servicer keeps proper accounts in respect of the activities delegated to him; (b) the trustees shall ensure that the servicer has adequate operational systems and resources to administer the asset pool in relation to a securitisation transaction. (2) Servicer may be appointed by the special purpose distinct entity to do all or any of the following, namely:- (i) to coordinate with the obligors, manage the asset pool and collections therefrom; (ii) administer the cash flows of such asset pool, distributions to investors; and reinvestment, if any, in accordance with the scheme; and (iii) manage incidental matters. (3) Where a special purpose distinct entity appoints the originator as servicer, it shall adopt internal procedures designed to avoid conflict of interest.