Securized loan equipment: SEBI is thinking of implementing this change
Business Business: The Capital Market Regulatory Securities Exchange Board of India (SEBI) has issued a consultation paper on review of the issue and listing of loan equipment and securities receipts, inviting suggestions from the public. Those who do not know, tell them that SEBI had formed a work group to review the regulations related to securized loan equipment (SDI), which has given a list of its proposals. The securition of the loan is a process in which assets are kept together and then sold to investors in small units. Cash flows from these underlying assets are transported to investors through equipment.
In view of the recommendations of the work group, instructions issued by RBI and meetings with various market participants, SEBI has now released a list of proposals for public consultation. Ticket size: The minimum ticket size for regulated institutions like bank, small finance bank and NBFC will be ₹ crore by an investor. Number of investors: In the case of issuing SDI (secular loan equipment) on the basis of private placement, the number of persons who can be proposed and proposed to list can be revised to 200. The proposal also mentions that more investors will be required to be taken as a public issue of SDI, more than such a number.
When calculating the range of 200 persons, the invitation given to qualified institutional buyers will be excluded. Proposal period: The number of minimum and maximum days to remain open for public proposal will be 3 and 10 days respectively.
Loans/receipts: It will specify listed loan securities, business receipts, rent receipts and equipment lease receipts. Additionally, SEBI can periodically notify other types of loans or receipts. Any other debt or receipt (including unacceptable loan securities) will not be allowed to be built for SDI. Investors’ Rights: SDI will not change the rights of investors without their consent.
Score: The listed SDI issuing unit is required to be registered on the score platform.
