SEBI Regulation 2(e): Understanding Credit Enhancement for Municipal Debt Securities and Its Impact on Creditworthiness
Credit Enhancement, as defined by the Securities and Exchange Board of India (SEBI) under regulation 2(e) of the 2015 regulations concerning the issue and listing of municipal debt securities, refers to any arrangement designed to improve the creditworthiness of a security. This can include mechanisms such as subordination, insurance, letters of credit, over-collateralization, undertakings, guarantees, and letters of comfort.