SC: ‘Abandonment of Service is Not Voluntary Retirement’, Denying SBI Clerk Pension Benefits  ||  Supreme Court: Stranger Affected by an Interim Order is Entitled to be Impleaded in Writ Proceedings  ||  Supreme Court: Courts Cannot Replace an Authority’s Discretion, and Sets Aside Direction to Governor  ||  SC: Title Suit Hit by Constructive Res Judicata if Omitted in Prior Injunction Suit Disputing Title  ||  SC Clarifies Whether a Co-Operative Society Can Act as a Resolution Applicant under the IBC  ||  Chhattisgarh High Court: Innocent Litigants Should Not be Penalized For Lapses by Their Lawyers  ||  Delhi High Court: Marriage With the Victim Cannot Absolve an Accused of Rape under POCSO  ||  J&K&L HC: Acquisition Lapses if 80% Compensation is Unpaid Before Possession under Section 17A  ||  Delhi HC: Policy Number is Not Mandatory For LIC Details under RTI, But Basic Details are Required  ||  SC: Courts Must Curb Unlicensed Money Lenders; Probes Need Not Wait For New Law    

Transaction in Corporate Bonds/Commercial Papers through RFQ platform and enhancing transparency pertaining to debt schemes- (Securities and Exchange Board of India) (22 Jul 2020)

MANU/SMFD/0008/2020

Capital Market

1. In order to enhance the transparency and disclosure pertaining to debt schemes and investments by mutual funds in Corporate Bonds/Commercial Papers, SEBI based on the recommendation of Mutual Fund Advisory Committee (MFAC) has decided the following:

A. In order to increase the liquidity on exchange platform,

i. On monthly basis, Mutual Funds shall undertake at least 10% of their total secondary market trades by value (excluding Inter Scheme Transfer trades) in the Corporate Bonds by placing/seeking quotes through one-to-many mode on the Request for Quote (RFQ) platform of stock exchanges. The percentage as specified shall be reckoned on the average of secondary trades by value in immediate preceding three months on rolling basis.

For example, for the month of October 2020, Mutual Funds shall undertake 10% (by value) of their average secondary market trades (excluding IST) done in immediate preceding three months i.e. July 2020, August 2020 and September 2020 for Corporate Bonds by placing / seeking quotes through RFQ platform of stock exchanges.

ii. All transactions in Corporate Bonds and Commercial Papers wherein Mutual Fund is on both sides of the trade shall be executed through RFQ platform of stock exchanges in one-to-one mode.

iii. Any transaction entered by mutual fund in Corporate Bonds in one to many mode and gets executed with another mutual fund shall also be counted for the aforesaid 10% requirement.

B. In partial modification of SEBI circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 it is decided for debt schemes that, such disclosure shall be done on fortnightly basis within 5 days of every fortnight. In addition to the current portfolio disclosure, yield of the instrument shall also be disclosed. The disclosure shall be made in the format mentioned in the aforementioned circular.

2. The above shall come into force with effect from October 1, 2020.

3. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : TRANSACTION   CORPORATE BONDS   TRANSPARENCY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved