All trades in securitised debt instruments and over-the-counter (OTC) trades in corporate bonds will be have to be reported within 15 minutes of the transaction from Tuesday, April 1.
As per directions by market regulator Securities and Exchange Board of India (Sebi) to stock exchanges and market intermediaries, trades in securitised debt instruments (listed or unlisted) by mutual funds, foreign institutional investors (FIIs), alternative investment funds, foreign venture capital investors and portfolio managers are to be reported on trade reporting platform of either National Stock Exchange (NSE), Bombay Stock Exchange (BSE) or MCX-SX, within 15 minutes of trade.
Similarly, all OTC trades in corporate bonds have to be reported on any one of the reporting platforms provided in the debt segment of the three stock exchanges within 15 minutes.
Besides, Reserve Bank-regulated entities will have to report their OTC trades in corporate bonds and securitised debt instruments on the stock exchanges.
In 2013, the market regulator had enabled reporting of OTC trades by trading members and non-trading members on the debt segment of the bourses.
OTC trades generally refer to transactions that can be executed between two market entities without others being aware of the price at which they have been effected.
To ensure that the data is not duplicated, Sebi said the trades will be reported on only one of the trading platform.
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.
Besides, the bourses will have to provide continuous disclosures relating to the securitised debt instruments traded and such other additional information pertaining to the trade.
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