SEBI Amends Issue and Listing of Securitised Debt Instruments and Security Receipts Regulations

SEBI has overhauled its 2008 regulations governing securitised debt instruments (SDIs) and security receipts (SRs), introducing comprehensive reforms to strengthen India's ₹1.2 lakh crore securitization market. The amended framework mandates enhanced disclosure of underlying asset pools, including granular data on borrower profiles and repayment histories. Originators must now conduct quarterly portfolio reviews and maintain 5% skin-in-the-game for all issuances. The revised regulations establish differentiated norms for various asset classes - requiring higher credit enhancement for microfinance securitizations (minimum 15%) while simplifying documentation for auto loan pools. A new chapter governs environmental, social and governance (ESG) linked securitizations, aligning with global sustainable finance trends. Market participants have six months to comply with the updated requirements, which also introduce a unified listing agreement for all exchange-traded SDIs. These changes aim to address post-2008 financial crisis concerns while supporting growth of India's securitization market, particularly for NBFCs and housing finance companies.