By amending its Securitised Debt Instruments Regulations, SEBI said that the move would further develop the securitisation market and also “rationalise and clarify the role and responsibilities of trustee”.

“A special purpose distinct entity and its trustee or any of its directors, partners or managers, shall not either through its account or through associates or family members, relatives or friends indulge in any insider trading.

“A special purpose distinct entity and its trustee shall have internal control procedures and financial and operational capabilities which can be reasonably expected to protect its operations, its investors and other registered entities from financial loss arising from theft, fraud, and other dishonest acts, professional misconduct or omissions,” SEBI said.