India's markets regulator Sebi has proposed relaxing securitisation norms to match Reserve Bank of India regulations. The changes include easing the 25% single borrower exposure cap and shifting disclosure duties to servicers.
Sebi aims to harmonize its securitisation framework with RBI guidelines that apply to entities under the central bank's oversight. A key proposal relaxes the current 25% cap on exposure to a single borrower, facilitating smoother operations for such entities. The regulator also suggests transferring disclosure responsibilities to the servicer and adjusting governance rules for special purpose distinct entities (SPDEs). These modifications seek to enable single-asset deals while boosting transparency in the process. Public comments on the proposals are invited, reflecting Sebi's effort to refine the framework amid evolving financial practices.
