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The Securities and Exchange Board of India ("SEBI") by way of Circular No. HO/17/11/18(1)2025-DDHS POD1/I/342/2025 dated 16.12.2025 ("SDI Circular")1, has mandated periodic disclosure requirements for Securitised Debt Instruments ("SDIs").
SEBI has mandated that trustees of special purpose distinct entities shall submit half-yearly disclosures to SEBI and the stock exchanges where SDIs are listed, within 30 days from the end of March and September, as applicable. The disclosures cover:
- For SDIs backed by loans/listed debt securities/credit facility exposures (Annexure I): Maturity characteristics of underlying assets, Minimum Retention Requirement ("MRR"), credit quality parameters (including overdue exposures, security details, rating distribution, default rates, recovery rates, LTV/DTI ratios, prepayment rates, expected credit losses), amendments to underlying transactions, pool characteristics (industry-wise and geographical distribution), and Minimum Holding Period ("MHP"); and
- For SDIs backed by other exposures (Annexure II): Maturity characteristics, MRR, credit quality of underlying assets (including collection deviations, obligor defaults, prepayment rates, recovery actions), amendments to underlying transactions, material events impacting originator performance, and MHP.
The provisions of the SDI Circular shall be effective from 31.03.2026.
Footnote
1 Mandating periodic disclosure requirements - Securitised Debt Instruments (SDIs).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
