SECURITISED DEBT INSTRUMENT :

The Securities Contracts (Regulation) Act, 1956 was amended in 2007 to include under the definition of securities any certificate or instrument (by whatever name it is called) issued to an investor by any issuer who is a special purpose distinct entity possessing any debt or receivable, including mortgage debt assigned to such entity, and acknowledging the beneficial interest of the investor in such debt or receivable, including mortgage debt, as the case maybe.

Securitization involves the pooling of financial assets and the issuance of securities that are re-paid from the cash flows generated by these assets. Common assets for securitization include credit cards, mortgages, auto and consumer loans, student loans, corporate debt, export receivable, and offshore remittances.

Securitised debt instruments are regulated by the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, SEBI (Public Offer and Listing of Securitized Debt Instruments)  Regulations, 2008 for listing on stock exchanges and the Securitization Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003.