Regulation 30D - Clean up call option - Securities And Exchange Board Of India (Issue And Listing Of Securitised Debt Instruments And Security Receipts) Regulations, 2008

1 [Clean up call option 30D . (1) The originator shall be able to repurchase the transferred exposure only through invocation of a clean-up call option: Provided that the purchase on invocation of clean-up calls is conducted at an arms-length, on market terms and conditions (including price or fee) and is subject to the originator s normal credit approval and review processes. (2) The originator can exercise the clean-up call at a threshold of not more than ten per cent. of the original value of the underlying assets or securitised debt instruments. (3) The exercise of the clean-up calls shall be exercised at the discretion of the originator. (4) The clean-up call options shall not be structured to avoid allocating losses to credit enhancements or positions held by investors or to provide credit enhancements: Provided that exercise of the clean up call serving as a credit enhancement shall be considered a form of implicit support provided by the originator. ] *************** NOTES:- 1 . Inserted vide F. No. SEBI/LAD-NRO/GN/2025/247 dated 05-05-2025