AIFs Asked to Undertake 10% of Secondary Market Trades in Corporate Bonds By Placing Quotes on RFQ Platform
Moneylife Digital Team 02 February 2023
Market regulator Securities and Exchange Board of India (SEBI) has asked alternative investment funds (AIFs) to undertake at least 10% of their secondary market trades in corporate bonds by value in a month by placing quotes on the request for quote (RFQ) platforms. 
In a circular, the market regulator says, “To increase the liquidity on RFQ platform of stock exchanges and to enhance the transparency and disclosure pertaining to trading in the secondary market in corporate bonds, SEBI has in past prescribed stipulations for transactions on RFQ  platform by mutual funds, portfolio management services, and stock brokers….it is stipulated that AIFs shall undertake at least  10% of their total secondary market trades in corporate bonds by value in a month by placing quotes on the RFQ platform.”
Earlier in a circular dated 19 October 2022, SEBI stated that quotes on the RFQ platform can be placed to an identified counterparty (one-to-one mode) or to all the participants (one-to-many mode). In the case of transactions in corporate funds where AIFs come in, both sides will be executed through the RFQ platform in a one-to-one mode. 
However, according to the new circular, any transaction entered by an AIF in corporate bonds in the one-to-many mode, which gets executed with another AIF, should be counted in ‘one-to-many mode’ and not in ‘one-to-one mode’.
FM Promises To Address Aam Aadmi’s Friction Points on KYC, Reclaiming Shares; Rollout Is Unclear
Sucheta Dalal, 03 February 2023
The Union Budget was high on feel-good rhetoric, promises and slogans, with an eye on the general elections. It, nevertheless, pays lip service to solving some of the contentious issues faced by ordinary people. There was also an...
RBI Allows Banks To Accept SEBI KYC for Opening Accounts of Foreign Portfolio Investors
Moneylife Digital Team 01 February 2023
With an aim to simplify know-your-customer (KYC) related procedure for opening bank accounts by foreign portfolio investors (FPIs), the Reserve Bank of India (RBI) has allowed banks to accept KYC done by a custodian or an...
90% of Traders May Lose in the F&O Casino, but Here Is Why the Casino Will Only Get Bigger
Debashis Basu, 31 January 2023
There was much alarm, surprise and consternation last week when the market regulator, the Securities and Exchange Board of India (SEBI), released a study showing that 90% of active traders dabbling in derivatives such as futures &...
SC upholds NCLAT order on dues of former Jet Airways employees
IANS 31 January 2023
The Supreme Court on Monday upheld the National Company Law Appellate Tribunal's (NCLAT) order directing the payment of provident fund and gratuity dues of the Jet Airway's former employees.
A bench, headed by Chief...
Free Helpline
Legal Credit