Corporate Bond Market – Reporting Platform to also be set up by NSE
Summary
SEBI authorizes the National Stock Exchange (NSE) to establish a corporate bond reporting platform alongside the existing Bombay Stock Exchange (BSE) system. The circular mandates that trades in listed debt securities be reported to either BSE or NSE, with both exchanges coordinating to aggregate and disseminate homogeneous data. Stock exchanges are directed to amend their regulations and ensure all relevant trading information is publicly available on their websites.
Text
It has now been decided that the National Stock Exchange of India Limited (NSE) may also set up and maintain a similar reporting platform for corporate bonds with immediate effect on terms and conditions laid out in the aforesaid SEBI circular.
Trades executed by the members of BSE or NSE shall be reported on the reporting platforms of their respective stock exchanges who would host such information on their websites. As regards Over the Counter (OTC) trades, the parties concerned shall have the freedom to report the deals on the platform of either BSE or NSE.
BSE and NSE shall co-ordinate among themselves to ensure that the information reported with BSE and NSE is aggregated, checked for redundancy and disseminated on their websites in a homogenous manner.
Information disseminated on the websites of BSE and NSE shall display the following essential data: Issuer Name, Maturity Date, Current Coupon, Last Price Traded, Last Amount Traded, Last Yield (annualized) Traded, Weighted Average Yield Price, Total Amount Traded and the Rating of the Bond and any other additional information as the stock exchanges think fit.
Further, the following additional details shall be made available through a hyperlink: Ratings including the last change where possible, Call/ Put Option Dates, Record Date, Next Coupon Date, Step up Coupons, Day Count Convention, Floating Benchmark if applicable and the spread over the Benchmark and any other instrument specific material information.
Till such time that FIMMDA sets up such a platform, it shall disseminate information made available on bond trading by the two exchanges with appropriate value addition. In this regard, BSE and NSE are directed to extend their co-operation to FIMMDA.
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.
Pursuant to the launch of the corporate bond reporting platform at NSE, reporting may be made to either platform of BSE or NSE but not to both for the same transaction. Although, reporting may be done at either of the exchange platforms, BSE and NSE shall ensure that all the relevant details are disseminated by both the stock exchanges on their websites and shall ensure that there is no segregation of data between the exchanges on the basis of its reporting origin.
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;
Communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report from the month of April, 2007.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Corporate Bond Market – Reporting Platform to also be set up by NSE. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.