To bring in more transparency, Sebi has directed stock exchanges and intermediaries to ensure that all over-the-counter (OTC) trades in corporate bonds are reported within 15 minutes of such transactions.
"It is advised that all OTC trades in corporate bonds shall be reported only on any one of the reporting platform provided in the debt segment of stock exchanges viz NSE, BSE and MCX-SX within 15 minutes of the trade," Securities and Exchange Board of India (Sebi) said in a circular today.
The decision will be effective April 1, this year.
Last year, the market watchdog had enabled reporting of OTC trades by trading members and non-trading members on the debt segment of the stock exchanges.
OTC trades are generally trades executed between two market entities without others being aware of the price at which the transaction was effected.
Already, BSE, NSE and FIMMDA (Fixed Income Money Market and Derivatives Association of India) have been authorised to set up and maintain reporting platforms to capture information related to OTC trades in corporate bonds.
In January, this year, Sebi had issued similar directions with regard to trades in securitised debt instruments.
Sebi had said that all trades in securitised debt instruments (listed or unlisted) by Mutual Funds, FIIs, among others, would be reported on trade reporting platforms of either NSE, BSE or MCX-SX within 15 minutes of trade.
Besides, RBI had also asked its regulated entities to report their OTC trades in corporate bonds and securitised debt instruments on the bourses with effect from April 1.
