MITCON Credensia acts as trustee for Securitised Debt Instruments (SDI) issued by Special Purpose Distinct Entities (SPDEs) and listed on recognised stock exchanges. We administer the trust for the benefit of the SDI holders in accordance with the SEBI (Issue and Listing of Securitised Debt Instruments) Regulations, 2008 and the transaction documents.
Our role covers both Pass-Through Certificate (PTC) structures and Direct Assignment-backed structures, with end-to-end oversight from pre-issue diligence through post-execution monitoring and payouts.
Scope of Service
- Vetting of the trust deed, deed of assignment, servicing agreement and other transaction documents
- Holding the securitised assets / receivables in trust for the benefit of investors
- Monitoring servicer performance and collection of receivables
- Verification and oversight of periodic payouts to SDI holders
- Monitoring of credit enhancement and liquidity facility utilisation
- Reporting to investors and regulators as required under the regulations
- Enforcement of rights in the interest of SDI holders in case of default
Frequently Asked Questions
What is a Securitised Debt Instrument (SDI)?
An SDI is a marketable security issued by a Special Purpose Distinct Entity that represents an interest in a pool of receivables or other financial assets, issued and listed under the SEBI (Issue and Listing of Securitised Debt Instruments) Regulations, 2008.
What is the role of the trustee in an SDI transaction?
The trustee holds the underlying assets in trust for the benefit of investors, monitors the servicer and the cash flows, oversees payouts, and enforces investor rights in the event of default.
What is the difference between PTC and Direct Assignment?
Under a Pass-Through Certificate (PTC) structure, investors hold instruments issued by the SPDE; under Direct Assignment, the pool of receivables is assigned directly to the buyer. The trustee oversight differs accordingly.
Why is listing of SDIs significant?
Listing brings the instrument within the SEBI regulatory framework, providing investors with disclosure standards, a trustee mechanism and access to grievance redressal.
How are payouts to investors monitored?
The trustee verifies collections reported by the servicer against the waterfall defined in the transaction documents and confirms that distributions to investors are made correctly and on time.
What happens if the servicer underperforms?
The trustee monitors servicer performance against agreed benchmarks and can initiate servicer replacement or other remedies provided in the transaction documents to protect investor interests.
What documents are required to appoint the trustee?
Typically the trust deed, deed of assignment, servicing agreement, information memorandum, and credit enhancement documentation, among others.
How does MITCON Credensia add value as an SDI trustee?
Through specialised securitisation operations expertise, payout modelling, rigorous monitoring and transparent reporting across both PTC and Direct Assignment structures.
Have questions about Securitisation Trustee (SDI)?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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