Draft Listing Agreement for Securitized Debt Instruments
Securities and Exchange Board of India (SEBI) had notified the Regulations for Public Offer and Listing of Securitized Debt Instruments on May 26, 2008. The Regulations, inter alia, specified initial disclosure requirements for offer documents for public issues of securitized debt instruments and privately placed securitized debt instruments that are proposed to be listed on stock exchanges.
Further to the initiative, in order to enable listing of such instruments on stock exchanges, SEBI has prepared a draft Listing Agreement for Securitized Debt Instruments containing continuous disclosure requirements. The draft has now been placed on the SEBI Website for public comments/ suggestions till October 31, 2010.
The draft Listing Agreement seeks to disseminate performance related information on a monthly basis. This format includes pool level, asset-level and tranche level information so as to enable investors to asses the performance of underlying pools. While disclosure of loan level details is proposed to be mandatory for pools with less than 20 loans per asset class, for others, quartile analysis of the performance of loans is proposed.
The draft Listing Agreement for Securitized Debt Instruments places the burden of disclosures on the Special Purpose Distinct Entity (SPDE) which is the issuer of securitized debt. In order to facilitate flow of information, the draft requires the SPDE to enter into back to back arrangements with the originator, servicer and the trustee.
Public comments/ suggestions may be sent by e-mail up to October 31, 2010 to Shri Vikas SS, Assistant General Manager (vikas@sebi.gov.in) and/ or Ms. Nila Kumar Hariharan, Manager (nilakumarh@sebi.gov.in). Alternatively, the same may be sent physically to the following address, so as to reach latest by October 30, 2010:
The Deputy General Manager,
Division of Funds – I, Investment Management Department,
Securities and Exchange Board of India,
SEBI Bhavan, C-4A, G-Block,
Bandra Kurla Complex, Mumbai – 400051.
