Sebi releases discussion paper on disclosures of securitised debt

The Securities and Exchange Board of India (Sebi) on Friday released a discussion paper on higher disclosure standards pertaining to public offer and listing of securitised debt instruments (SDI). Sebi, in the paper, has highlighted the role and responsibilities of trustees of SDI. It has proposed a trustee needs to have a net worth of at least Rs 2 crore. The duty of calling for periodic reports from sellers and ensuring the investors of SDI have been allotted debt would lie with the trustee of SDI.

In the discussion paper Sebi has proposed that trustees would have the power to inspect books of account, records and the trust property to the extent necessary for discharging its obligations.

The market regulator has also stated that securitisation trustee shall not be party to any manipulative practices and creating of false market. The regulator has invited comments from the market till August 28.