SEBI aligns securitised-debt rules with RBI framework, permitting single-asset securitisation
Originators, servicers and debenture trustees in listed securitisation must apply the RBI-aligned rules: single-asset securitisation for RBI-regulated entities, servicer-borne periodic disclosures, and a one-seat originator cap on SPDE trustee boards
Change
On 19 June 2026, the Securities and Exchange Board of India (SEBI) approved amendments to the SDI Regulations, 2008 aligning them with the RBI securitisation framework — exempting RBI-regulated entities from the 25% obligor-concentration limit to permit single-asset securitisation, shifting periodic disclosure obligations from originator to servicer, and capping an RBI-regulated originator's SPDE trustee-board representation at one.
Why it matters
RBI-regulated originators can now undertake single-asset securitisation provided the concentration risk is disclosed as a prominent offer-document risk factor. Servicers, not originators, become responsible for periodic disclosures such as monthly reports and performance data. The same-group restriction is reworded to bite where the originator shares a group or common control with the trustee, and SEBI gains express power to appoint a replacement trustee on suspension or cancellation of a trustee's registration, retaining wind-up discretion for systemic-risk or fraud cases.
Implications
- — Securitisation structuring teams at RBI-regulated originators (banks, NBFCs) using the single-asset exemption must disclose the resulting concentration risk as a prominent risk factor in the offer document — omitting the disclosure while relying on the 25%-limit exemption is non-compliant with the amended SDI Regulations.
- — Servicers in listed securitisation transactions must assume the periodic disclosure obligations (monthly reports, performance data) previously placed on the originator — failure to file shifts the reporting breach onto the servicer.
- — Debenture trustees and SPDE sponsors must reconstitute trustee boards so an RBI-regulated originator holds at most one seat and confirm the SPDE does not acquire receivables from a same-group or commonly controlled originator — non-conforming board composition or acquisitions breach the amended Regulations.
Who is affected
- — Securitisation structuring teams at banks and NBFCs (originators)
- — Servicers administering securitised asset pools
- — Debenture trustees and SPDE sponsors