The Securities and Exchange Board of India (SEBI), on May 04, 2026, issued a consultation paper proposing amendments to the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 to align them with the securitisation framework prescribed by the Reserve Bank of India (RBI) under its 2021 directions on Securitisation of Standard Assets. The objective is to harmonise regulatory requirements for RBI-regulated entities and address inconsistencies impacting the development of the securitisation market.
The consultation proposes five key changes: (i) permitting single asset securitisation by exempting RBI-regulated entities from concentration limits; (ii) shifting periodic disclosure and reporting obligations from the originator to the servicer; (iii) restricting originator representation on SPDE boards to one member without veto rights; (iv) allowing securitisation transactions between originator and SPDE belonging to the same group for RBI-regulated entities; and (v) replacing the requirement of winding up securitisation schemes upon trustee cancellation with appointment of a new trustee.
Public comments have been invited on the above proposals to assess their adequacy and impact on market participants. Stakeholders may submit their responses through SEBI’s online platform by May 25, 2026. The proposed amendments are aimed at improving regulatory clarity, aligning with RBI norms, and facilitating growth in the securitisation market while maintaining investor protection safeguards.
