India’s Securities and Exchange Commission on Monday raised a proposal requiring clear entities with special purpose and their trustees to file detailed semi-annual disclosures of securitized debt instruments to both regulators and stock exchanges.
This action is part of SEBI’s broader initiative to increase transparency and improve investor protection within the securitization market.
The proposed circular requires that a clear entity with a special purpose and its trustees provide detailed disclosures every six months to SEBI and stock exchanges, where securitized debt certificates are listed within 21 days of the end of March and September.
These disclosures cover the performance, structure, and credit quality of assets that support securitized equipment.
The draft guidelines state that disclosure requirements vary depending on the type of assets that have been securitized. For SDIs supported by loans, listed debt securities, or credit facilities, the trustee must provide data on the asset’s maturity profile, late exposure, advance payment rates, collection measures, loan-to-value ratios, and expected credit losses.
Individual formats have been proposed for SDIs backed by other asset types.
