SEBI (PUBLIC OFFER AND LISTING OF SECURITISED DEBT INSTRUMENTS) REGULATIONS,
2008
SEBI notified SEBI (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 on May 26, 2008 taking into account the market needs, cost of the transactions, competition policy, the professional expertise of credit rating agencies, disclosures and obligations of the parties involved in the transaction and the interest of investors in such instruments.
Eligibility Criteria
– A person can not make a public offer of securitized debt instruments or seek listing for such securitized debt instruments unless –
(a) it is constituted as a special purpose distinct entity;
(b) all its trustees are registered with the SEBI under the SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations, 2008; and
(c) it complies with all the applicable provisions of these regulations and the Act.
– The requirement of obtaining registration is not applicable for the following persons, who may act as
trustees of special purpose distinct entities:
(a) any person registered as a debenture trustee with SEBI;
(b) any person registered as a securitization company or a reconstruction company with the RBI under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(c) the National Housing Bank established by the National Housing Bank Act, 1987;
(d) the National Bank for Agriculture and Rural Development established by the National Bank for Agriculture and Rural Development Act, 1981.
(e) any scheduled commercial bank other than a regional rural bank;
(f) any public financial Institution as defined under clause (72) of section 2 of the Companies Act, 2013; and
(g) any other person as may be specified by SEBI.
However, these persons and special purpose distinct entities of which they are trustees are required to comply with all the other provisions of the SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations, 2008. However, these Regulations are not applicable for the National Housing Bank and the National Bank for Agriculture and Rural Development, to the extent of inconsistency with the provisions of their respective Acts.
– An applicant seeking registration to act as a trustee shall,-
(a) have a networth of not less than two crore rupees.
(b) have in its employment a minimum of two persons who, between them, have atleast five years experience in activities related to securitisation and atleast one among them shall have a professional qualification in law from any university or institution recognised by the Central Government or any State Government or a foreign university.
However, the above-said requirements are not applicable on the National Housing Bank established by the National Housing Bank Act, 1987 and National Bank for Agriculture and Rural Development established by the National Bank for Agriculture and Rural Development Act, 1981.