SEBI’s New Rules on Debt Investments Analyzed

The Securities and Exchange Board of India (SEBI) has made some changes to how companies handle debt investments. They’ve issued a new rule that requires companies to share important information about their investments regularly. This is designed to make the market safer for everyone.

• SEBI demands regular disclosures for SDIs, ensuring market transparency.
• Trustees of special entities must submit reports twice a year.
• Reports are due within 30 days after March or September.
• Separate formats exist for different types of SDIs.
• This rule protects investors and promotes financial stability.
• The new rules take effect on March 31, 2026.

Specifically, these changes focus on Securitised Debt Instruments (SDIs). These are investments made when companies bundle up loans and sell them to investors. SEBI wants to make sure everyone knows how these investments are doing.

The rule says that the people in charge of managing these SDIs – called “Trustees” – must share updates with SEBI and the stock exchanges where the SDIs are traded. They need to do this every six months, by the end of March or September.

It’s important to note that there are different sets of rules depending on what kind of loans and investments are involved. For example, if it’s a loan-based SDI, or a security backed by debt or credit, there will be specific formats and information that needs to be shared.

These changes will start on March 31, 2026. This gives companies time to prepare and make sure they’re following the new rules. SEBI hopes this will make the market more trustworthy and protect investors.

Investing in debt is now more transparent thanks to SEBI’s proactive regulations.