Bourses to report OTC trades in corporate bonds in 15 mins: SEBI

India Infoline News Service | Mumbai |

RBI had also asked its regulated entities to report their OTC trades in corporate bonds and securitised debt instruments on the bourses from April 1

In order to bring in more transparency, SEBI (Securities and Exchange Board of India) 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," SEBI said in a circular on Friday.

The decision will be effective April 1, 2014. 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.

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.
 

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