SEBI Notification on Securitised Debt Instruments Amendment ...

Comprehensive SEBI Regulations Reshape Securitisation Framework with Stricter Investor Safeguards and Enhanced Transparency

May 7, 2025

Notifications     SEBI

SEBI Notification on Securitised Debt Instruments Amendment Regulations, 2025 Key Legal Amendments: The notification introduces comprehensive regulatory changes for securitisation transactions, focusing on: 1. Definitional Amendments - Refined definitions for "advertisement", "control", and "minimum holding period" - Expanded scope of eligible underlying assets for securitisation 2. Regulatory Compliance Requirements - Mandatory periodic disclosure obligations for originators - Enhanced trustee accountability and responsibilities - Stricter conditions for liquidity facility providers - Minimum retention requirements for originators 3. Operational Restrictions - Minimum ticket size set at 1 crore for securitised debt instruments - Minimum holding period requirements for underlying assets - Limitations on clean-up call options - Dematerialisation of securitisation instruments 4. Advertisement Guidelines - Specific format and disclosure requirements for public issue advertisements - Restrictions on misleading or manipulative content 5. Governance Provisions - Enhanced code of conduct for special purpose distinct entities and trustees - Increased transparency and investor protection mechanisms The amendments aim to strengthen regulatory oversight, improve investor protection, and establish more robust frameworks for securitisation transactions in the Indian financial market.

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