SEBI Proposes Overhaul of Securitisation Framework to Enhance Investor Protection
| Aspect | Details |
|---|---|
| Proposing Authority | Securities and Exchange Board of India (SEBI) |
| Proposal Objective | Bolster investor protection and streamline regulatory requirements |
| Public Feedback Deadline | November 16, 2024 |
| Minimum Investment Threshold | Rs 1 crore for securitised debt instruments (SDIs) |
| Investor Limit (Private) | Maximum of 200 investors for private placements |
| Public Offer Duration | 3 to 10 days |
| Dematerialisation | Mandatory for all securitised debt instruments |
| Risk Retention | 10% of securitised asset pool; 5% for shorter maturities |
| Holding Period | Minimum holding period before securitisation required |
| Clean-Up Call Option | Originators can repurchase up to 10% of securitised assets |
| Liquidity Facilities | Mandatory to address cash flow timing issues |
| Eligible Underlying Assets | Listed debt securities, trade receivables, rental incomes, equipment leases; single-asset excluded |
| Minimum Track Record | Originators must have 3 years of operational experience |
| Alignment with RBI | Builds on SEBI's 2008 framework and RBI's 2021 securitisation guidelines |