SEBI Pushes for Greater Transparency in Securitised Debt Market
SEBI has released a consultation paper mandating half-yearly disclosures from special purpose distinct entities and their trustees on securitised debt instruments. This initiative aims to enhance transparency and investor protection in the securitisation market by requiring detailed performance, structure, and credit quality reports of securitised assets.
- Country:
- India
The Securities and Exchange Board of India (SEBI) has introduced a consultation paper that requires detailed half-yearly disclosures from special purpose distinct entities (SPDIs) and their trustees regarding securitised debt instruments. Through this measure, SEBI aims to bolster transparency and protect investors in the securitisation market.
The proposed mandate insists that SPDIs and their trustees submit comprehensive reports to SEBI and relevant stock exchanges within 21 days after the end of each half-year. These disclosures will encompass performance data and the underlying asset structure and credit quality associated with the securitised instruments.
Under the new guidelines, SPDIs backed by loans will need to provide information on asset maturity profiles, overdue exposures, prepayment rates, and more. A different format is prescribed for other asset types. SEBI's efforts align with the Reserve Bank of India's securitisation framework and call for automated supervision and data processing.
(With inputs from agencies.)
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