SEBI Mandates SCORES for Trustees of ‘Special Purpose Distinct Entities’ Under LODR

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Special Purpose Distinct Entities

Notification F. No. SEBI/LAD-NRO/GN/2025/244, Dated 29.04.2025

The Securities and Exchange Board of India (SEBI) has notified amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI (LODR) Regulations], specifically targeting the grievance redressal mechanism and disclosure framework for securitised debt instruments.

1. Grievance Redressal Mechanism – Regulation 13

SEBI has amended Regulation 13 of the SEBI (LODR) Regulations, which deals with the grievance redressal mechanism. In a significant move to enhance investor protection and regulatory oversight, SEBI now mandates that the SCORES registration (SEBI Complaints Redress System) must be obtained at the trustee level, encompassing all Special Purpose Distinct Entities (SPDUs) for which the trustee acts. This centralized approach is aimed at improving accountability and efficiency in addressing investor grievances linked to securitised debt instruments.

2. Enhanced Disclosure Obligations – Part D of Schedule III

Further, SEBI has introduced new disclosure obligations under Part D of Schedule III to the SEBI (LODR) Regulations, under the heading –

“Disclosure of Information Having Bearing on Performance/Operation of Listed Entity and/or Price Sensitive Information – Securitised Debt Instrument.”

The amendment includes the insertion of clauses (10) and (11) after the existing clause 9, which prescribe the following requirements –

  • Clause (10) – Disclosure of any outstanding litigations or material developments involving the originator, servicer, or any other party to the transaction, where such developments may adversely impact investor interests.
  • Clause (11) – Disclosure of any defaults in servicing obligations by the servicer.

These disclosures must be made to the stock exchange on an annual basis, either by the special purpose distinct entity or its trustee.

3. Effective Date

These amendments came into force with their publication in the Official Gazette on 29th April 2025.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied