SEBI has proposed that trustees would have the power to inspect books of account, records and the trust property.
The SEBI on Thursday released a discussion paper on SEBI (Public Offer And Listing Of Securitised Debt Instruments) (Amendment) Regulations, 2015. These Regulations shall come into force on the date of their publication in the Official Gazette.
In the paper, SEBI has highlighted the role and responsibilities of trustees of SDI (securitised debt instruments). An applicant seeking registration to act as a trustee shall have a networth of not less than Rs. 2 crore. The duty of calling for periodic reports from sellers and ensuring the investors of SDI have been allotted debt would lie with the trustee of SDI.
A trustee shall supervise the implementation of the covenants regarding creation of security for the securitised debt instruments; do such acts as are necessary in the event the security becomes enforceable and supervise the enforcement of the security in the interest of the investors.
In the discussion paper, SEBI has proposed that trustees would have the power to inspect books of account, records and the trust property to the extent necessary for discharging its obligations.
SEBI has also said that securitisation trustee shall not be party to any manipulative practices and creating of false market. The regulator has invited comments from the market till August 28
In the paper, SEBI has highlighted the role and responsibilities of trustees of SDI (securitised debt instruments). An applicant seeking registration to act as a trustee shall have a networth of not less than Rs. 2 crore. The duty of calling for periodic reports from sellers and ensuring the investors of SDI have been allotted debt would lie with the trustee of SDI.
A trustee shall supervise the implementation of the covenants regarding creation of security for the securitised debt instruments; do such acts as are necessary in the event the security becomes enforceable and supervise the enforcement of the security in the interest of the investors.
In the discussion paper, SEBI has proposed that trustees would have the power to inspect books of account, records and the trust property to the extent necessary for discharging its obligations.
SEBI has also said that securitisation trustee shall not be party to any manipulative practices and creating of false market. The regulator has invited comments from the market till August 28
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