The Bombay Stock Exchange (BSE) on June 30, 2023, released a notification of Penal action in case of failure to honour an RFQ transaction.
According to the existing framework used by both Exchanges, in the event of any settlement failure, Exchanges are required to revoke the defaulting entity's access to the RFQ platform for 15 days based on the instructions received from the Clearing Corporations. The RFQ platforms of both Exchanges must be used to withdraw access.
According to the advice given by SEBI at the joint MII meeting held on May 15, 2023, there won't be any penalties applied to "Individual" Investors until the 30th of November 2023 in order to develop the corporate bond market for individual investors and to facilitate the transactions know-how during their initial engagement on the electronic RFQ platform.
[Notification No.20230630-38]
