The Securities and Exchange Board of India (Sebi) has proposed significant changes to its securitisation framework to align it with the Reserve Bank of India's (RBI) regulations. Notably, Sebi aims to lift the 25% cap on single borrower exposure in asset pools for entities governed by RBI norms. This change is intended to facilitate the listing of securitisation deals backed by a single asset, which had been restricted under Sebi's existing rules aimed at risk mitigation. Currently, these rules require strict diversification to reduce reliance on individual borrowers, which has hindered market access for certain securitisation structures. Additionally, Sebi has proposed transferring the responsibility for periodic disclosures regarding the performance of the underlying asset pool from the originator to the servicer, enhancing transparency for investors. The regulator also plans to revise governance norms for special purpose distinct entities (SPDEs), limiting representation on the SPDE board for RBI-regulated originators. Public comments on these proposals will be accepted until May 25.