Securitization :

Securitization is the process of acquisition of financial asset by the securitization or reconstruction company from the lender (bank or financial institution) The reconstruction or securitization company may be raising funds for acquisition of financial asset from the qualified institutional buyers by issue of security receipts representing undivided interest in the financial assets or otherwise.

Security Receipt:

A receipt or another security is issued by a securitization company or reconstruction company to any qualified institutional buyer. The receipt is an evidence of purchase or acquisition by the holder thereof of an undivided right, title or interest in the financial asset involved in securitization is called the security receipt. The security receipts are transferable in the market. SARFAESI Act made the loans secured by mortgage or other charges transferable.