in general both the entities turn one entities loans into another entities investments .
but there are some differences .
can someone share this knowledge with me ?
thank you
Asset reconstruction company and securitization company are one and the same in Indian context.
RBI publications quotes as follows
Accordingly, Asset Reconstruction Company (Securitization Company / Reconstruction Company) is a company registered under Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SRFAESI) Act, 2002. It is regulated by Reserve Bank of India as a Non Banking Financial Company (u/s 45I (f) (iii) of RBI Act, 1934).
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i was under the impression that ARC securitize only NPA ( loans gone / declared as bad ) & securitization company can securitize any loan ( good or bad) … can you please elaborate ?