Market regulator Sebi today said all trades in securitised debt instruments or certificates will be reported on stock exchanges within 15 minutes of the transaction, a move that will improve transparency.
"All trades in securitised debt instruments (listed or unlisted) by Mutual Funds, FIIs /Qualified Foreign Investors/ Foreign Portfolio Investors, Alternative Investment Funds, Foreign Venture Capital Investors and Portfolio Managers shall be reported on trade reporting platform of either NSE, BSE or MCX-SX within 15 minutes of trade," Sebi said in a circular.
To ensure that the data is not duplicated, Sebi said the trades will be reported on only one of the trading platform.
The reporting for a trade must be done by the buyer and the seller on the same platform to ensure matching of both sides of the trades, the Securities and Exchange Board of India (Sebi) said.
The move will help in developing securitised debt instrument market and improve transparency.
Securitisation involves pooling of financial assets and the issuance of securities that are re-paid from the cash flows generated by these assets.
Common assets for securitisation include credit cards, mortgages, auto and consumer loans, student loans, corporate debt, export receivable and offshore remittances.
The Sebi said the reporting platforms will provide continuous data pertaining to securitised debt instruments, comprising of issuer name, ISIN number (a code that uniquely identifies a specific securities issue), face value, maturity date, current coupon, last price as well as amount, last annualised yield, weighted average yield/price, among others.
The exchanges will also provide on its website offer continuous disclosures relating to the securitised debt instruments traded and such other additional information pertaining to the trade.
Further, the regulator said that all trades in securitised debt instruments done between entities including Mutual Funds, FIIs, Alternative Investment Funds and portfolio managers and RBI regulated entities, will mandatory be cleared and settled through the National Securities Clearing Corporation Ltd or the Indian Clearing Corporation Ltd or MCX-SX Clearing Corporation Ltd.
The decision will be effective from April 1, this year.
In January last year, Sebi had decided to provide a dedicated debt segment on stock exchanges to enhance the quality of trading infrastructure.
