The Securities and Exchange Board of India (SEBI) on August 07, 2023, issued clarification regarding Transactions in Corporate Bonds through the Request for Quote (RFQ) platform by FPIs.
SEBI has been taking action to improve the openness and disclosure of trading in the secondary market for corporate bonds as well as to raise the liquidity on the RFQ platform of stock exchanges. For transactions by SEBI-registered intermediaries on the RFQ platform, specific requirements have been set down.
It is decided that FPIs must execute at least 10% of their total secondary market trades in corporate bonds by value by placing/seeking quotes on the RFQ platform of stock exchanges, on a quarterly basis. This is done to increase liquidity on the RFQ platform in relation to trading in corporate bonds by FPIs.
The aforesaid requirement shall come into force with effect from October 01, 2023.
[Notification No. SEBI/HO/AFD/AFD-POD-2/P/CIR/2023/138]
