Meaning of 'Securitization"

Q: What is the meaning of ''securitization"?

Ans. It means sale of accounts recievables by any person (called 'originator') to Special Purpose Vehicle (SPV) which then collects those recievables from the debtors. Note that only a public limited company, a trust or a company controlled or managed by Fed/Provincial Government can function as SPV after getting registered with the SECP.

(Concept of securitization is relevant for Sec. 28(1)(b) and Sec. 153(5) (d) of the ITO-2001)