The Reserve Bank of India ('RBI')
constituted a task force on the Development of Secondary Market for
Corporate Loans ('Task Force') on May 29,
2019.
Bahram N Vakil, AZB's founding Partner was a member of this
Task Force and other lawyers from AZB participated in its
deliberations.
The Task Force submitted its report to the Governor of the RBI
on August 31, 2019 and the RBI has invited comments from
stakeholders and the public via email to [email protected] (see https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48054
).
The Task Force acknowledges the current impediments to the
growth of the secondary loan trading market, including the need for
more market participants, inadequate diligence and price discovery
mechanisms, lack of standardized documents and regulatory hurdles
and restrictions. It also identifies the various benefits of an
active secondary market – for lenders, borrowers, the
government and other stakeholders. Certain key
