Sebi sets Rs 1 cr minimum investment, mandatory demat for securitised debt instruments
Sebi sets Rs 1 cr minimum investment, mandatory demat for securitised debt instruments
NEW DELHI: (May 6) Markets regulator Sebi has mandated a minimum ticket size or investment threshold of Rs 1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities.
Securitised Debt Instruments (SDIs) are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as securitisation, allows the originator (such as a bank) to convert illiquid assets into liquid ones, providing an alternative source of funding.
Investors in these instruments receive returns based on the performance of the underlying debt pool, and the risk is spread across multiple assets, offering potentially attractive returns.
