SCs/RCs must disclose asset acquisition date, valuation, and interest in SR offer documents
No longer current — withdrawn, no replacement on file yet
RBI's own words: “A Master Circular giving gist of circulars/notifications issued up to June 30, 2008” — RBI/2008-2009/13
Source: Reserve Bank of India · RBI/2007-2008/291 · issued 22 Apr 2008 · ~1 min read
Quick answerRBI clarifies that SCs/RCs issuing Security Receipts must disclose the date of acquisition, valuation, and their interest in the underlying assets in offer documents, enabling informed investor decisions.
The rule, in the simplest words
SCs/RCs must put the date when they bought each asset in the SR offer documents.
They must also state how much each asset is worth (valuation) at the time the SR is issued.
The offer must show how much of the asset the SC/RC owns (their interest) when the SR is issued.
These three pieces of information help investors decide if the SR is a good choice.
If any SR is issued, the offer documents must include all three points for every underlying asset.
How it plays out — a real example
A securitisation officer named Rohan in Mumbai reviews the offer document for a new SR. He checks that the document lists the purchase date, the current valuation, and his company’s ownership percentage for each loan in the basket, so he can confidently explain to investors why the SR is a solid investment.
What changed
RBI clarified that existing disclosure requirements for SCs/RCs in SR offer documents explicitly include the date of acquisition, valuation of assets, and the SC/RC's interest in those assets at the time of SR issuance. This builds on earlier guidelines from 2003 and 2007.
What it means for you
SCs/RCs must now ensure their offer documents contain these three specific data points for each underlying asset. This enhances transparency for investors and reduces information asymmetry. Lenders investing in SRs can better assess the quality and timing of asset acquisition.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update SR offer document templates to include date of acquisition, valuation, and SC/RC interest for each underlying asset.
Verify that all past and future SR issuances comply with this clarified disclosure requirement.
Train compliance teams on the specific data points required in offer documents.
Review existing SR disclosures for gaps and rectify before next issuance.
Who it affects
Registered Securitisation Companies (SCs), Registered Reconstruction Companies (RCs), Investors in Security Receipts (SRs), Compliance officers at SCs/RCs
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What specific disclosures are now required in SR offer documents?
SCs/RCs must disclose the date of acquisition of each underlying asset, its valuation, and the SC/RC's own interest in that asset at the time of issuing the SR.
Does this circular apply to all SR issuances?
Yes, it applies to all Security Receipts issued by registered SCs/RCs, as it clarifies existing guidelines from 2003 and 2007.
What happens if an SC/RC fails to include these disclosures?
Non-compliance may lead to regulatory action by RBI, as the circular mandates these disclosures to enable informed investment decisions.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “A Master Circular giving gist of circulars/notifications issued up to June 30, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/291
DNBS (PD) CC. No. 9/SCRC /10.30.000/ 2007-2008
April 22, 2008
All registered Securitisation Companies/Reconstruction Companies
Regulation of SCs/RCs-disclosure while issuing Security Receipts(SRs)
Please refer to paragraph 8 of the Securitisation Companies/ Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 vide Notification No. DNBS. 2/CGM(CSM)-2003 dated April 23,2003 (the Directions) and paragraph 7 of circular DNBS (PD) CC. No. 6/SCRC/10.30.049/2006-07 dated May 28, 2007 (the circular) containing Guidelines on declaration of Net Asset Value of Security Receipts issued by Securitisation Companies/Reconstruction Companies vide which Securitisation Companies/ Reconstruction Companies are required to make certain disclosures in the offer documents of Security Receipts as per the annexure to notification dated April 23, 2003.
2. It is clarified that to enable the investors to make informed investment decision in the SRs, the disclosure in respect of underlying basket of assets required to be made by SCs/RCs in the offer documents as above, include disclosure in respect of the date of acquisition of the assets, valuation of the assets and the interest of SCs/RCs in such assets at the time of issue of SRs.
Yours faithfully,
(P.Krishnamurthy)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/291 · issued 22 Apr 2008. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4134&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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