Regulation 9 - Permissible structures for special purpose distinct entity
Securities And Exchange Board Of India (Issue And Listing Of Securitised Debt Instruments And Security Receipts) Regulations, 2008 Chapter III CONSTITUTION AND MANAGEMENT OF SPECIAL PURPOSE DISTINCT ENTITIES AND INCIDENTAL MATTERS
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Trust-based special purpose entities must preserve investor protection, segregate asset pools, and avoid conflicts of interest in securitisation. Special purpose distinct entities for securitised debt instruments must be constituted as trusts with constitutional documents authorising trustees to ... Summary
Trust-based special purpose entities must preserve investor protection, segregate asset pools, and avoid conflicts of interest in securitisation.
Special purpose distinct entities for securitised debt instruments must be constituted as trusts with constitutional documents authorising trustees to issue such instruments, while preventing control by the originator or its associates. The trust instrument must include Schedule IV clauses, protect investors, avoid limiting statutory obligations, and prohibit indemnity for negligence or wrongful acts. The entity must avoid conflicts of interest, refrain from raising debt except through securitised debt instruments, preserve segregation of asset pools, and remain in existence until all instruments are redeemed or written off.
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