Clearing and Settlement of OTC trades in Commercial Paper (CPs) & Certificates of Deposit (CDs)
Summary
SEBI mandates that all regulated entities report OTC transactions in Commercial Papers and Certificates of Deposit on the FIMMDA platform within 15 minutes. Effective April 01, 2012, these entities must settle such trades through NSCCL and ICCL following existing corporate bond settlement processes. The circular is issued under Section 11 and 11A of the SEBI Act, 1992 to protect investor interests and regulate the market.
Text
all SEBI Regulated entities shall report their OTC transactions in CDs and CPs on the FIMMDA reporting platform within 15 minutes of the trade for online dissemination of market information with effect from August 16, 2010.
all SEBI regulated entities shall settle their OTC trades in CDs and CPs on the lines of already existing process for settlement of OTC trades in corporate bonds, through National Securities Clearing Corporation Limited (NSCCL) and Indian Clearing Corporation Limited (ICCL) with effect from April 01, 2012.
All transactions cleared and settled in terms of this circular will be subject to such norms as may be specified by NSCCL and ICCL.
Source: SecMarx — Clearing and Settlement of OTC trades in Commercial Paper (CPs) & Certificates of Deposit (CDs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.