SEBI issued a notification on reporting of trades in non-convertible securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021

Nov 26, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities Exchange Board of India (SEBI) on November 25, 2022, issued a notification regarding the reporting of trades in non-convertible securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.

SEBI,vide Operational  Circular  No.  SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021 , has prescribed the requirements pertaining to operational and other aspects relating to the issue and listing of  Non-convertible Securities.

In the said  Operational  Circular,  Chapter  XVI on ‘Reporting of  Trades’, inter alia, contains provisions relating to reporting, clearing, and settlement of OTC trades by all person(s) dealing in non-convertible securities. 

It is observed that information on OTC trades in listed Non-convertible Securities provided to the Stock Exchange(s) by the investors is incomplete and/ or inaccurate. This, in turn, amounts to incorrect and distorted information being displayed on the Stock Exchanges’ websites.

Consequently, paragraph 1.3  of  Chapter  XVI,  titled, “Reporting of  Trades”, of the Operational Circular shall be replaced as follows: “1.3.  The reporting of OTC trades in non-convertible securities shall be made by all person(s) dealing in such securities irrespective of whether they are SEBI registered intermediaries or otherwise, as per the format attached to the document.

Stock Exchanges shall monitor the compliance of this circular or chapter XVI of the Operational circular and bring to the notice of SEBI, periodically, discrepancies in reporting of OTC trades by investors.

The provisions of this circular shall come into force from January 01, 2023.

[Notification No. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/159]


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