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Informist, Friday, Jun. 19, 2026

MUMBAI - The board of the Securities and Exchange Board of India Friday approved amendments to its regulations on issue and listing of securitised debt instruments and security receipts with the objective of aligning the regulatory framework governing listed securitisation transactions with the Reserve Bank of India's framework on securitisation.

In a major amendment, RBI-regulated entities like banks and non-banking finance companies will be exempted from the 25% obligor concentration limit when undertaking securitisation. Currently, no obligor in a securitised debt issuance can constitute more than 25% of the asset pool at the time of issuance. But the new concession for RBI-regulated entities will be subject to additional disclosure of the concentration risk arising from single-asset securitisation as a prominent risk factor in the offer document.

Another key amendment made by SEBI pertained to shifting responsibility to servicer from the originator of the securitised assets for periodic disclosure obligations. SEBI said this change recognises the fact that servicer is the entity responsible for data collection and reporting.

For special purpose distinct entity--an entity created for the purpose of a securitisation transaction--SEBI has decided to limit the originator's representation on the board of trustees of the entity to a maximum of one representative in cases where the originator is an RBI-regulated entity.

To facilitate continuity of securitisation structure in the event of suspension or cancellation of trustee's registration, SEBI has decided to empower itself to appoint a new trustee in place of the old trustee. Currently, SEBI has to necessarily direct the winding up of schemes of the entity if the trustee's registration is cancelled or suspended. SEBI would still retain that option in the changed framework.  End

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

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