Del. HC: Liquidated Damages Mentioned in Agreement Can’t be Awarded in Absence of Proof of Loss  ||  MP HC: S.375 Marital Sex Exemption Also Provides Exemption Under Section 377 of IPC  ||  SC: SARFAESI Doesn’t Give Any License to Bank Officers to Act Against the Scheme of Law  ||  All. HC: Court Can’t Mechanically Reject Application for Waiving Off Cooling Period u/s 13B of HMA  ||  Kar. HC: Acquittal Order Can’t be Put in Challenge by Stranger to the Case  ||  Kar. HC: Alternate Remedy Can’t be Used as China Wall Against Invocation of Writ Jurisdiction  ||  Bom. HC Upholds Constitutional Validity of Goa’s Green Cess Act  ||  Del. HC: Not Court’s Business to Demonstrate Morality of an Act unless it has Caused Harm  ||  Del. HC: Cost Accountants and Chartered Accountants Not Similarly Placed Under Law  ||  SC: No Party Ought to be Vexed Twice in a Litigation for One and the Same Cause    

Transaction in Corporate Bonds through Request for Quote platform by Portfolio Management Services- (Securities and Exchange Board of India) (09 Dec 2021)


Capital Market

1. In order to enhance transparency pertaining to debt investments by Portfolio Management Services (PMS) in Corporate Bonds (CBs) and to increase liquidity on exchange platform, it is decided as under:

i. On a monthly basis, PMS shall undertake at least 10% of their total secondary market trades by value in CBs in that month by placing/seeking quotes through one to-one (OTO) or one-to-many (OTM) mode on the Request for Quote platform of stock exchanges (RFQ).

ii. In order to ensure compliance with the abovementioned 10 percent requirement, PMS shall consider the trades executed by value through OTO or OTM mode of RFQ with respect to the total secondary market trades in CBs, during the current month and immediate preceding two months on a rolling basis.

iii. All transactions in CBs wherein PMS is on both sides of the trade shall be executed through RFQ in OTO mode. However, any transaction entered by PMS in CBs in OTM mode which gets executed with another PMS, shall be counted in OTM mode.

iv. PMS are permitted to accept the Contract Note from the stock brokers for transactions carried out in OTO and OTM modes of RFQ.

2. The above shall come into force with effect from April 1, 2022. Accordingly, from the month of April 2022, PMS shall ensure that at least 10% (by value) of their secondary market trades in CBs in current month and immediate preceding two months (i.e. February 2022, March 2022 and April 2022) are executed by placing / seeking quotes through OTO or OTM mode of RFQ. Further, for the month of May 2022, the secondary market trades executed in CBs in the months of March 2022, April 2022 and May 2022 shall be considered for the purpose of aforesaid calculation.

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


Share :        

Disclaimer | Copyright 2023 - All Rights Reserved