SEBI Amends Issue and Listing of Securitised Debt Instruments and Security Receipts Regulations [Read Notification]
The regulations mandate a Minimum Holding Period (MHP) of 3 months for loans up to 2 years and 6 months for longer-tenor loans, measured from the date of security interest registration or relevant loan-specific benchmarks
SEBI debt – SEBI amendments 2025 – SEBI listing norms – Taxscan
SEBI debt – SEBI amendments 2025 – SEBI listing norms – Taxscan
The Securities and Exchange Board of India (SEBI) has amended the Securities and Exchange Board of India (Issue and Listing of Securitised Debt Instruments and Security Receipts) (Amendment) Regulations, 2025.
These amendments update definitions (such as “advertisement,” “control,” and “minimum holding period”), revise references to align with current regulations (like the SEBI Debenture Trustees Regulations, 1993), and introduce stricter eligibility conditions for underlying assets in securitisation transactions.
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They also add mandatory periodic disclosure requirements by originators and trustees, detail trustee responsibilities including investor meeting procedures, strengthen safeguards regarding the use of liquidity providers, and set obligations for half-yearly submissions to SEBI. Notably, the amendments prohibit re-securitisation and synthetic securitisation, ensuring enhanced transparency, governance, and investor protection in securitised debt instruments.
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The regulations set a minimum holding period ( MHP ) for loans before securitisation: 3 months for loans up to 2 years, and 6 months for longer-tenor loans, counted from the date of security interest registration (or other benchmarks like first repayment, project commencement, or full disbursement depending on the loan type).
For repurchasing transferred exposures, the originator can only use a clean-up call option within 10% of the original asset value, ensuring it’s done fairly and not structured to mask losses or provide hidden credit enhancements.
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Several procedural updates are made, including timelines for instrument allotment, updated company law references, e-voting requirements, and advertising rules mandating fair, non-misleading public issue ads with clear disclosures, including QR codes for online ads.
Additional provisions reinforce governance: ensuring sound corporate policies, managing conflicts of interest, proper client disclosures, fair treatment of investors, maintaining competence, and ensuring internal controls to protect operations from fraud or misconduct.
A new schedule 7 has been added to the regulation. It required to furnish formats of advertisements for public issue of securitised debt instruments.
To Read the full text of the Notice CLICK HERE
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