SEBI Mandated periodic disclosure requirements for Securitised Debt Instruments
SEBI recently notified a rigorous disclosure framework for Securitised Debt Instruments (SDIs) to enhance market transparency and investor protection. Central to these regulations is the requirement for trustees of Special Purpose Distinct Entities (SPDEs) to file detailed half-yearly disclosures within 30 days of the end of March and September. These reports, which become mandatory starting March 31, 2026, utilize specific formats (Annexure I and II) depending on whether the SDIs are backed by loan/debt exposures or other receivables like trade invoices. These filings must provide granular data on asset performance, including maturity profiles, credit quality, and the status of assets overdue by 90 days or more.
Complementing these periodic filings are strict operational transparency mandates. Originators are now required to provide quarterly performance reports to trustees, validated by a statutory auditor's certification to ensure the integrity of the underlying asset pool. Furthermore, the framework tracks risk mitigation by requiring public disclosure of Minimum Retention Requirements (MRR) and the current status of credit enhancements or liquidity facilities. Finally, under the SEBI (LODR) Regulations, entities must maintain event-based transparency, providing at least seven working days' notice for record dates and seeking prior exchange approval for any material modifications to the instrument's structure that could impact investor interests.
