Corporate Bond Market – Launch of Reporting Platform
Summary
SEBI mandates the establishment of a corporate bond reporting platform by the Bombay Stock Exchange to capture trading information accurately. Issuers, intermediaries, and contracting parties are required to report all transactions in listed debt securities valued at Rs. 1,00,000 or above within thirty minutes of execution. Stock exchanges are directed to amend their regulations and disseminate these provisions to ensure immediate implementation.
Text
The term ‘Corporate Bonds’ for this purpose shall include all listed debt securities issued by institutions such as Banks, Public Sector Undertakings, Municipal Corporations, bodies corporate and companies.
All issuers, intermediaries and contracting parties shall be granted access to the corporate bond reporting platform for reporting of trades. Where transactions are executed through the intermediary, reporting responsibility shall lie with the intermediary. If executed otherwise, reporting will be made either through an authorized intermediary or directly by the contracting parties.
All transactions in corporate bonds of the value of Rs.1,00,000 or above are required to be reported to the corporate bond platform. The transactions shall be reported within 30 minutes of closing the deal. The information on settlement shall be reported by the parties involved in the transaction within 1 trading day from completion of the settlement.
The Bombay Stock Exchange Limited (BSE) shall ensure that the Corporate Bond Reporting platform for the purpose shall be available from 10.00 am to 5.30 pm on all trading days.
The access to the platform for the purpose of reporting will be given to all market intermediaries who approach BSE for the purpose. The connectivity to the non-members of the Exchange would be enabled through Virtual Private Network (VPN).
The BSE shall populate the data reported on their platform on their website on a real time basis for information of investors/public.
Since the platform is purely for reporting purposes, the stock exchange shall have no role or liability for settlement of these trades. The intermediaries/ contracting parties shall settle the trades bilaterally.
Issuers are required to disclose/ update regularly all material information such as rating obtained on the instruments and the rating migrations as and when they take place, record date, reasons for record date, put/call option dates, units exercised under put/call option etc, failing which action may be initiated against the issuer and/or its directors/promoters.
The reporting shall be made for all trades in listed debt securities issued by all institutions such as Banks, Public Sector Undertakings, Municipal Corporations, bodies corporate and companies.
The reporting of trades in Corporate Bonds shall be made by all person(s) dealing in such corporate bonds irrespective of whether they are SEBI registered intermediaries or otherwise.
Make necessary amendments to the listing agreement, bye- laws, rules and regulations for the implementation of the above decision immediately, as may be applicable and necessary.
Bring the provisions of this circular to the notice of the entities in both equity and debt segments, member brokers, clearing members of the Exchange and also to disseminate the same on the website for easy access to the investors;
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Source: SecMarx — Corporate Bond Market – Launch of Reporting Platform. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.