The Hindu Business Line : Regulations for debt instruments okayed

Mumbai, Jan.30 SEBI on Wednesday approved regulations for the public issue of securitised debt instruments (SDI). As per the regulations, the entity issuing SDI will be a trust and the trustees will require registration from SEBI.

“The instrument issued by the issuer to the investor shall acknowledge the beneficial interest of such investor in the underlying debt or receivables assigned to the issuer,” SEBI said adding the issuer can undertake only the activities permitted by the regulations.

“In case of public issuances, listing will be mandatory,” the regulator said adding the instruments issued on private placement basis may also be listed, subject to the compliance of the provisions of the regulations.

Regulations also require strict segregation of assets of each scheme.

The regulations have been made taking into account the need to develop the SDI market , the SEBI said, adding that competition policy, cost of transactions, and the views of the credit rating agencies were also taken into account in this matter.

More Stories on : Regulatory Bodies & Rulings | Debt Market | Corporate Bonds

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