SEBI issued a consultation paper on May 4, 2026, seeking amendments to the 2008 regulations governing issuance and listing of securitised debt instruments and security receipts. The paper aims to modernize the regulatory framework for asset-backed securities and security receipts issued by Asset Reconstruction Companies. Key areas include eligibility criteria, disclosure requirements, and listing procedures. Public comments are being sought to refine the regulatory approach for these debt instruments in India's evolving securitisation market.

This consultation paper represents SEBI's effort to update decade-old regulations governing securitised debt instruments (like mortgage-backed securities, asset-backed securities) and security receipts issued by ARCs when they acquire stressed assets from banks. The 2008 regulations were drafted when India's securitisation market was nascent. Since then, the market has evolved significantly with increased ARC activity, growing retail participation in debt markets, and new financial instruments. The amendments likely address gaps in investor protection, enhance disclosure standards, and align with international best practices. For ARCs, clearer listing norms could improve liquidity for security receipts, making stressed asset resolution more efficient. The consultation process reflects SEBI's consultative approach to regulation-making, ensuring market participants can provide input before final rules are notified. This is particularly important given the technical nature of securitisation and the need to balance innovation with investor protection in India's expanding debt capital markets.