Corporate Bond Market – Launch of Trading Platform

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.... for Corporate Bonds, SEBI vide circulars No. SEBI/ CFD/DIL/BOND/1/2006/12/12 dated December 12, 2006 and No. SEBI/CBM/ BOND/1/2007/02/03 dated March 01, 2007 authorized BSE and NSE to set up and maintain corporate bond reporting platforms to capture all information related to trading in corporate bonds as accurately and as close to execution as possible. III. In the second phase of development, it has been decided to permit BSE and NSE to have in place corporate bond trading platforms to enable efficient price discovery and reliable clearing and settlement in a gradual manner. To begin with, the trade matching platform shall be order driven with essential features of OTC market. Eventually, a system of anonymous order matching shall be es....

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....rading in listed corporate debt securities may settle their trades bilaterally between them. They may also use the services of the stock exchanges for clearing and settlement. 8. BSE and NSE shall ensure that the shut period in corporate bonds shall be reduced and aligned to that applicable for Government Securities within a reasonable period of time. 9. All entities including Qualified Institutional Investors (QIBs), shall trade in corporate bonds subject to a minimum value of ₹ 1 lakh. Exchanges may also have a limited segment for transactions in smaller market lots. 10. The Actual/Actual day count convention, presently followed for dated Government Securities, shall be mandatory for all new issues of corporate bonds. For exis....

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....t market in corporate debt instruments, it has been decided to further amend the listing agreement for debentures issued by circular No. SEBI/ CFD/ DIL/ CIR- 39 /2004/ 11/ 01 dated November 1, 2004 and further amended by circular No. SEBI/ CFD/ DIL/ LA/ 1/ 2007/20/03 dated March 20, 2007, as follows: 1. In clause 1.4, for sub-clause (c), the following sub-clause shall be substituted, namely: "The issuer agrees to ensure that services of ECS (Electronic Clearing Service), Direct Credit, RTGS (Real Time Gross Settlement) or NEFT (National Electronic Funds Transfer), are used for payment of interest and redemption amounts as per applicable norms of the Reserve Bank of India. In cases where such facilities are not available, the issuer agre....