SEBI Proposes Securitisation Rule Changes To Align With Reserve Bank Of India Norms

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing changes to securitisation rules to align them with the Reserve Bank of India (RBI) framework for standard assets. Public comments have been invited until May 25, 2026.

The proposal includes relaxing the 25% cap on exposure to a single borrower for entities regulated by the central bank, allowing structures backed by a single asset. The move aims to address differences between existing regulations and RBI directions. The regulator has also proposed shifting disclosure responsibilities to servicers and introducing periodic reporting requirements. Changes to the governance of special-purpose distinct entities and their trustees have been outlined to strengthen oversight.

It has been suggested that allowing related entities within the same group to participate in securitisation transactions under defined conditions. Provisions for winding up such transactions have also been included to provide clarity on closure processes.