SEBI Mandates Half-Yearly Disclosure Norms for Securitised Debt Instruments to Enhance Transparency [Read Circular]

The Securities and Exchange Board of India (SEBI) has issued a Circular dated December 16, 2025, mandating detailed half-yearly disclosure requirements for Securitised Debt Instruments (SDIs). The move aims to strengthen transparency, improve investor protection, and bring uniformity in reporting practices in the securitisation market.

The circular has been issued under the powers granted to SEBI under the SEBI Act, 1992 and the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008.

Who Will Be Affected

The new disclosure norms apply to:

• Special Purpose Distinct Entities created for securitisation
• Trustees of securitisation trusts
• Recognised stock exchanges where SDIs are listed

Under the circular, trustees will be responsible for submitting disclosures to both SEBI and the stock exchanges.

Know How to Prepare Estimation and Viability for Project Reports? Know more Click here

Key Disclosure Requirements

SEBI has prescribed standard formats for disclosures, which must be submitted twice a year, within 30 days from the end of March and September.

The disclosures are divided into two categories:

• Annexure I applies to SDIs backed by loans, listed debt securities, or credit facility exposures
• Annexure II applies to SDIs backed by other types of receivables

The information to be disclosed includes:

• Maturity profile of the underlying assets
• Minimum Retention Requirement and actual retention by the originator
• Credit quality and overdue status of the underlying assets
• Security cover and extent of secured and unsecured exposures
• Default rates, recovery actions, and expected credit losses
• Use of credit enhancement and liquidity facilities
• Prepayment behaviour and amendments to loan terms after securitisation

Illustrations for Clarity

To ensure correct implementation, SEBI has also provided illustrative examples explaining:

• Calculation of weighted average maturity
• Computation of weighted average credit rating
• Method for calculating average default rates

These illustrations are included as Annexure III to the circular.

Effective Date

The circular will come into force from March 31, 2026. The first set of disclosures will be required for the half-year ending March 2026.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates