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SEBI Securitised Debt Instruments Rules: Key Provisions

8 May 20251 min read
BANKING & FINANCESEBI SecuritisedDebt InstrumentsRules: KeyProvisions8 May 2025safalsetu.com

Why in the news

SEBI issued a rulebook for securitised debt instruments to improve transparency, risk management and investor confidence.

Key facts

  • SDIs pool loans, mortgages or receivables and are sold on as securities.
  • Originators such as banks convert illiquid assets into tradable instruments; investor returns track the underlying pool.

Key provisions

AreaRule
Primary ticket size₹1 crore minimum
Later transfers₹1 crore if originator is not RBI-regulated; for SDIs backed by listed securities, the highest face value among them
Public offer3 to 10 days
FormDemat only
Originator record3 years of operations
Risk retention10%; 5% if receivables mature within 24 months
Holding period3 months (loans up to 2 years); 6 months (above 2 years)

Assets

  • Allowed: listed debt securities, accepted trade receivables, rental income, equipment leases.
  • Barred: re-securitisation and synthetic (derivative-based) securitisation.

Exam angle

  • Retention numbers: 10% and 5%.
  • Banned structures: re-securitisation and synthetic securitisation.

Test yourself

1. What is the minimum primary investment size for SDIs under the new SEBI regulations?

Primary issuance needs ₹1 crore minimum for all investors.

2. Under SEBI's SDI rules, how long must a public offer remain open at the maximum?

The public offer lasts 3 to 10 days.

3. Which of these is prohibited as an SDI underlying structure under SEBI's new regulations?

Re-securitisation and synthetic securitisation are barred.