SEBI publishes Consultation Paper on re-introduction of open market buyback of shares or other specified securities through Stock Exchange

The Securities and Exchange Board of India (“SEBI”) has published a consultation paper proposing amendments in the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 (“SDI Regulations’). The proposals pertains to the securitisation transactions originated by Regulated Entities (REs) of RBI in order to align the same with the revised directions issued by the RBI in September 2021 on Securitization of Standard Assets. The comments/suggestions on the proposal may be submitted by May 25, 2026.

Key Proposals:

1. To exempt RBI-regulated entities from the requirement specified under Regulation 19A(a) of the SDI Regulations, similar to the existing exemptions available under clauses (d) and (e) of Regulation 19A.
2.  To impose the periodic disclosure obligations and related certifications on the servicer, who may also be the originator, or may be a  third  party who  obtains  information from the originator, so as to ensure availability of accurate, timely  and comprehensive information to investors
3. If the originator is an RBI-regulated entity, then the originator should not have more than one representative on the Board of  the SPDE who should be without  veto power.
4. To exempt RBI-regulated entities from the restriction specified under Regulation 10(3) of the SDI Regulations

Feedback Submission: Comments can be submitted through SEBI’s web-based public comments form: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes

Email Submission: In case of technical issues, comments can be emailed with the subject “Re-introduction of Open Market Buy-Back of Shares or Other Specified Securities through Stock Exchange” to SEBI at rohitd@sebi.gov.in or rinkig@sebi.gov.in

Source: Securities and Exchange Board of India