When NPA loans are purchased by Asset Reconstruction Companies from banks and financial institutions and then converted into marketable securities, the process is called

Securitization is the process of issuing marketable securities backed by a pool of existing assets such as auto or home loans. After an asset is converted into a marketable security, it is sold. A securitization company or reconstruction company may raise funds from only the QIB (Qualified Institutional Buyers) by forming schemes for acquiring financial assets.