The Reserve Bank of India (RBI) has released a draft proposal requiring a minimum investment of Rs 1 crore in securitisation notes, along with a mandate that all such notes be issued, held, and transferred exclusively in demat format starting October 1, 2026. The move is designed to enhance market transparency, liquidity, and efficiency.
Securitisation enables banks and financial institutions to pool loans—such as home, vehicle, and personal loans—and sell them through special purpose entities. Under the proposed rules, each investor must invest at least Rs 1 crore, and the same threshold applies to any subsequent buyer of these notes.
The draft covers commercial banks, small finance banks, non-banking financial companies (NBFCs), and All India Financial Institutions. The RBI will accept public and stakeholder comments until August 27, 2026, before finalizing the regulation.
While the high entry barrier is likely to restrict retail participation, institutional investors including banks, insurers, mutual funds, pension funds, NBFCs, and high-net-worth individuals are expected to remain the primary players. The mandatory demat format is intended to simplify ownership tracking and transfer processes.
The RBI has also proposed aligning public offers with existing SEBI regulations. If approved, these changes could make the securitisation market more structured while preserving its predominantly institutional character.
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