In order to boost investor confidence, the Securities and Exchange Board of India – SEBI has approved stricter norms for trustees managing the issuance of securitised debt instruments. The SEBI board approved amendments in the Securitised Debt Instruments regulations to rationalise and clarify the role and responsibilities of trustee.Under the new norms, the trustee would call for periodic reports, supervise the implementation of conditions regarding creation of security for securitised debt instruments and take steps to ensure protection of investors as well as resolve their grievances. Besides, they would have to appoint a compliance officer for performing duties including monitoring compliance of the various rules and redress of investor grievances. The board also approved a proposal allowing banks and public financial institutions to act as trustee without obtaining registration. Generally, securitisation refers to creating a financial instrument by pooling various debt instruments and then selling them to investors. The SEBI board today also cleared a proposal making it compulsory for Indian firms to collect at least 25 per cent as upfront payment from foreign investors, who are allotted partly-paid shares of the company.