New Delhi, July 27 -- The Reserve Bank of India (RBI) on Monday proposed that all securitisation notes be issued, held and transferred only in dematerialised (demat) form, as part of draft amendments aimed at improving the efficiency, liquidity and transparency of the securitisation market.

In separate draft amendment directions issued for commercial banks, small finance banks, non-banking financial companies (NBFCs) and All India Financial Institutions (AIFIs), the RBI said the changes are intended to "improve efficiency, liquidity and transparency in issuance and subsequent transfer of Securitisation Notes (SNs)."

Under the proposed changes, "the issuance, holding and subsequent transfer of securitisation notes under these Directions ...