On Monday, the Securities and Exchange Board of India (Sebi) proposed significant amendments to the regulations governing securitised debt instruments (SDIs) to align with the Reserve Bank of India’s (RBI) 2021 directions on the securitisation of standard assets. The proposed changes aim to address feedback regarding discrepancies between Sebi’s regulations and RBI guidelines, especially concerning transactions initiated by RBI-regulated entities. Notably, Sebi plans to permit single-asset securitisation for these entities, exempting them from the current rule that limits any obligor's share in the asset pool to 25%. This change is expected to foster the development of the listed securitisation market, which has been hindered by existing restrictions. Furthermore, Sebi proposes to exempt RBI-regulated entities from limitations on securitisation transactions between an originator and a special purpose distinct entity (SPDE) within the same group, aligning with the RBI framework that does not impose such prohibitions. However, it maintains that the originator should not control the SPDE or trustee. Additionally, Sebi suggests governance modifications to ensure that if the originator is an RBI-regulated entity, it should have no more than one representative on the SPDE board, without veto powers. Lastly, Sebi proposes changes to the winding-up provisions of securitisation schemes, allowing for the appointment of a new trustee instead of mandating liquidation of the asset pool upon a trustee's registration suspension or cancellation.