MUMBAI : Ten major banks including state bank of india and icici bank on Wednesday came together to set up a secondary loan market association for promoting growth of secondary market for loans in india, and also unveil an online platform. The other members of SLMA are canra bank, Standard Chartered Bank, Kotak Mahindra Bank, Deutsche Bank, Bank of Baroda, Punjab National Bank, Axis Bank and HDFC Bank. Sinha also emphasized on the essential pre-requisites for a vibrant secondary market — an ecosystem of market intermediaries like facility agents, security trustee, arrangers, valuation agencies, etc. “As such, there is a felt need to expand the spectrum of investors in the secondary market and Alternative Investment Funds/Mutual funds to invest in the secondary loan market,"he said. Sunil Mehta, Chief Executive, Indian Banks’ Association (IBA), said currently the IBA is actively working on development of syndicated loan market in India and one of the key success factors for such market will be the parallel development of secondary market for sale of loan.

Source: Mint August 11, 2021 13:52 UTC