SEBI Mandates Enhanced Transparency in Securitisation Transactions

The Securities and Exchange Board of India (SEBI) requires trustees of special purpose distinct entities to enhance transparency in securitisation transactions by making detailed disclosures across various parameters. This includes reporting changes in credit quality, utilisation of credit enhancements, and compliance with minimum holding periods.

The Securities and Exchange Board of India (SEBI) has announced new regulatory requirements aimed at increasing transparency in securitisation transactions. As part of these measures, trustees of special purpose distinct entities will now need to make detailed, periodic disclosures.

The reporting, which will be conducted on a half-yearly basis, encompasses a wide range of parameters, including credit, recovery, and asset-pool metrics. Trustees must submit reports to SEBI and the relevant stock exchanges within 30 days after March and September.

Among the key requirements are reporting of changes in credit quality, utilisation of credit enhancements, and adherence to minimum holding periods. The provisions will come into effect starting from March 31, 2026, with the goal of providing greater clarity and accountability in securitisation transactions.