SEBI unveils amendments for investment in debt

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On 27 February, the Securities and Exchange Board of India (SEBI) released amendments to the SEBI (Foreign Portfolio Investors) Regulations, 2014, that permit foreign portfolio investors to invest in unlisted non-convertible debentures/bonds issued by an Indian company. However, the regulations explicitly state that such issuances will be subject to guidelines issued by the Ministry of Corporate Affairs and the government of India from time to time. Further, a “securitized debt instrument” has been defined to include:

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  • Any certificate or instrument issued by a special purpose vehicle set up for the securitization of assets with banks, financial institutions or non-banking financial institutions as originators;
  • Any certificate or instrument issued and listed in terms of the SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations, 2008.

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