Request for Quote (RFQ) platform for trade execution and settlement of trades in listed Non-convertible Securities, Securitised Debt Instruments, Municipal Debt Securities and Commercial Paper
Summary
This circular permits stock brokers registered under the debt segment to place or seek bids on the Request for Quote (RFQ) platform on behalf of their clients. It outlines the basic features of the RFQ platform and lists the eligible securities, including non-convertible securities and commercial paper. The directive mandates stock exchanges to implement necessary infrastructure and amendments by January 1, 2023.
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it has been decided to allow stock brokers registered under the debt segment of the Stock Exchange(s) to place/ seek bids on the RFQ platform on behalf of client(s), in addition to the existing option of placing bids in a proprietary capacity.
The Stock Exchange(s) are directed to: put in place the necessary infrastructure for access and use of the platform by the participants including stock brokers and issue necessary circular(s) covering the modalities for operational aspects; bring the provisions of this circular to the notice of SEBI registered Stock Brokers and disseminate the same on their websites; and make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above directions in coordination with one another to achieve uniformity in approach and communicate to SEBI.
This circular shall come into force with effect from January 1, 2023.
The following securities are eligible for being traded on the RFQ platform: Non-convertible securities; Securitised Debt Instruments; Municipal Debt Securities; Commercial Paper; Certificate of Deposit; Government Securities; State development Loans; Treasury Bills; and Any other instrument, as may be specified by Stock Exchanges in consultation with SEBI.
The RFQ platform is a system or interface for inviting and/ or giving quotes on an electronic platform. A participant who seeks quote(s) is termed as an Initiator and a participant who acts/ responds to the quote requests of the Initiator is termed as a Responder. The Initiator has the option to place quote(s) by disclosing its name or anonymously. The quote can be placed to an identified counterparty (i.e. ‘One to One’ (OTO) mode) or to all the participants (i.e. ‘One to Many’ (OTM) mode).
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021, Regulation 29 of the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 and Regulation 48 of the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008.
Source: SecMarx — Request for Quote (RFQ) platform for trade execution and settlement of trades in listed Non-convertible Securities, Securitised Debt Instruments, Municipal Debt Securities and Commercial Paper. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.