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SEBI Sets ₹1 Crore Minimum Investment and Mandates Demat Format for Securitised Debt Instruments.

Banking & Finance | Dated: 09 May 2025

In May 2025, the Securities and Exchange Board of India (SEBI), headquartered in Mumbai, Maharashtra, introduced key regulatory reforms for Securitised Debt Instruments (SDIs). The new guidelines mandate a minimum investment threshold of ₹1 crore for SDIs issued by Reserve Bank of India (RBI)-regulated originators and unregulated entities involved in securitization.

🎯 Key Highlights:

  • - Additionally, originators must now have a minimum of three years of operational experience to participate in securitisation activities.
  • - The amendments, issued under the revised ‘Issue and Listing of Securitised Debt Instruments and Security Receipts’ regulations, are aimed at enhancing market integrity and protecting investor interests by ensuring originators maintain a stake in underlying assets.

💡 Other Important Facts:

  • (i) For unregulated originators, a ₹1 crore minimum investment threshold applies even for subsequent transfers.
  • (ii) Public offers of SDIs must remain open for a minimum of 3 days and a maximum of 10 days, with advertisement requirements aligned to SEBI norms for non-convertible securities.
  • (iii) SEBI also introduced an ‘Investor Charter’ for KYC Registration Agencies (KRAs), outlining services, investor rights, and grievance redress mechanisms.

📚 Test Your Knowledge:

Recently, what is the minimum investment threshold set by SEBI for Securitised Debt Instruments (SDIs)?

Correct Answer: ₹1 crore

🚀 Quick Recap:

About SEBI

  • Chairperson: Tuhin Kanta Pandey
  • Headquarter : Mumbai