The market for distressed debt in India runs through two channels: securitisation (pooling loans into tradeable securities) and direct assignment (bilateral loan sales). Asset Reconstruction Companies sit at the intersection — buying bad loans from banks using security receipts, then recovering value through the SARFAESI enforcement powers.
122 securitisation framework notifications, 96 ARC notifications, 27 direct assignment notifications, and 58 recovery/enforcement notifications build this market.
See also: Securitisation & Asset Reconstruction
For the narrative version, see What Happens After a Loan Goes Bad