ICRA Welcomes SEBI’s Proposed SDI Norm Reforms

Manushree Saggar, Senior Vice President & Group Head, Structured Finance, ICRA Ltd 

“Securities and Exchange Board of India (SEBI) on 04 May 2026 proposed a series of changes to norms governing securitised debt instruments (SDIs), including allowing single-asset securitisation by RBI-regulated entities, shifting the responsibility for periodic disclosures on the underlying asset pool’s performance from the originator to the servicer amongst other proposals to align the SDI regulations with the Reserve Bank of India regulation for securitisation of standard assets (RBI SSA guidelines). Notably, non-bank finance companies, which are regulated by RBI, continue to be the largest originators in the securitisation market.  ICRA believes that these proposals would harmonise the SDI guidelines with the RBI SSA guidelines while supporting growth of the SDI market for RBI regulated entities.”