As per SEBI Regulations, explain the eligibility criteria for the Public offer of Securitized Debt Instruments.

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2019
As per SEBI Regulations, explain the eligibility criteria for the Public offer of Securitized Debt Instruments.

Answer & Explanation:

Following are the eligibility criteria for the Public Offer of Securitized Debt Instrument as per SEBI (Issue and Listing of Securitized Debt Instruments and Security Receipts) Regulations, 2008: A person cannot make a public offer of securitized debt instruments or seek listing for such securitized debt instruments unless: it is constituted as a special purpose distinct entity; all its trustees are registered with the SEBI under the SEBI (Issue and Listing of Securitized Debt Instruments and Security Receipts) Regulations, 2008; and it complies with all the applicable provisions of these regulations and the SEBI Act. The requirement of obtaining registration is not applicable for the following persons, who may act as trustees of special purpose distinct entities: any person registered as a debenture trustee with SEBI; any person registered as a securitization company or a reconstruction company with the RBI under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the National Housing Bank established by the National Housing Bank Act, 1987; the National Bank for Agriculture and Rural Development established by the National Bank for Agriculture and Rural Development Act, 1981; any scheduled commercial bank other than a regional rural bank; any public financial Institution as defined under clause (72) of section 2 of the Companies Act, 2013; and any other person as may be specified by SEBI. However, these persons and special purpose distinct entities of which they are trustees are required to comply with all the other provisions of the SEBI (Public Offer and Listing of Securitized Debt Instruments and Security Receipts) Regulations, 2008.

Topics: Debt Instruments

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