(1) Prior to submitting the draft offer document with the Board under regulation 22, the special purpose distinct entity shall enter into an arrangement with a registered depository for dematerialisation of the securitised debt instruments that are proposed to be issued to the public.
(2) The special purpose distinct entity shall give an option to the investors to receive the securitised debt instruments either in the physical form or in dematerialised form.
(3) The holders of dematerialised instruments shall have the same rights and liabilities as holders of physical instruments.
Mandatory listing.
24. A special purpose distinct entity desirous of making an offer of securitised debt instruments to the public shall make an application for listing to one or more recognized stock exchanges in terms of sub-section (2) of section 17A of the Act.
Credit rating. 25. (1) No special purpose distinct entity shall offer securitised debt instruments to the public unless credit rating is obtained from not less than two registered credit rating agencies.
(2) All credit ratings obtained by a special purpose distinct entity on the securitised debt instruments shall be disclosed in the offer document, including unaccepted credit ratings.
(3) A credit rating agency rating the securitised debt instruments issued by a special purpose distinct entity shall include reference to the following in the rating rationale: (a) quality of the asset pool and the strength of cash flows;
(b) payment structure;
(c) adequacy of credit enhancements;
(d) originator profile;
(e) risks and concerns for investors and mitigating factors;
(f) quality and experience of the servicer;
(g) terms of the servicer contract;
(h) provision for appointment of back-up servicer, if any; (i) any other relevant information.
Contents of offer document.