{"id":276012,"date":"2022-10-20T16:30:40","date_gmt":"2022-10-20T11:00:40","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=276012"},"modified":"2022-10-20T16:30:40","modified_gmt":"2022-10-20T11:00:40","slug":"sebi-issued-circular-requestforquote-rfq-platform-trade-execution-settlement-transparency-overthecounter-deals-negotiated-bilaterally-facilitate-wider-market-participation-corporate-bond-market-sebi","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/20\/sebi-issued-circular-requestforquote-rfq-platform-trade-execution-settlement-transparency-overthecounter-deals-negotiated-bilaterally-facilitate-wider-market-participation-corporate-bond-market-sebi\/","title":{"rendered":"SEBI issues circular on Request for Quote; Stockbrokers can now bid on behalf of clients"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"text-indent: 18pt;\">&#160; &#160;<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">On 19-10-2022, the Securities and Exchange Board of India (&#8216;SEBI&#8217;) has issued a circular on Request for Quote (&#8216;RFQ&#8217;) platform for trade execution and settlement of trades in listed Non-convertible Securities, Securitized Debt Instruments, Municipal Debt Securities and Commercial Paper to bring in transparency in &#8220;Over the Counter&#8221; deals which are negotiated bilaterally and to facilitate wider market participation in the corporate bond market. The provisions of this circular will come into effect from 1-01-2023.<\/p>\n<p><b>Key Points:<\/b><\/p>\n<ol>\n<li>\n<p>Earlier, stockbrokers were only allowed to place bids in a proprietary capacity. Now, SEBI has allowed such stockbrokers to place bids on this platform on behalf of clients also.<\/p>\n<\/li>\n<li>\n<p><b>RFQ<\/b> is an electronic platform to enable sophisticated, multi-lateral negotiations to take place on a centralized online trading platform with straight-through-processing of clearing and settlement to complete a trade.<\/p>\n<\/li>\n<li>\n<p>Basic features of RFQ platform:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>System for inviting\/ giving quotes electronically.<\/p>\n<\/li>\n<li>\n<p>Participant may request other participants for a quote of eligible security.<\/p>\n<\/li>\n<li>\n<p>The quote can be placed to an identified counterparty through:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">i) One To One (&#8216;OTO&#8217;) mode<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">ii) One To Many (&#8216;OTM&#8217;) mode<\/p>\n<\/p>\n<\/li>\n<li>\n<p>An audit trail of all interactions, I.e., quoted yield, mutually agreed price, deal terms etc., are maintained.<\/p>\n<\/li>\n<li>\n<p>Negotiation is bilateral in nature.<\/p>\n<\/li>\n<li>\n<p>Securities eligible:<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">i) Non-convertible securities<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">ii) Securitized Debt Instruments<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">iii) Municipal Debt Securities<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">iv) Commercial Paper<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">v) Certificate of Deposit<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">vi) Government Securities<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">vii) State development Loans<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">viii) Treasury Bills<\/p>\n<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr\/>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Kriti Kumar, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#160; &#160; On 19-10-2022, the Securities and Exchange Board of India (&#8216;SEBI&#8217;) has issued a circular on Request for Quote (&#8216;RFQ&#8217;) platform <\/p>\n","protected":false},"author":67011,"featured_media":264666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[35845,52471,52472,52473,2563,33725,30440],"class_list":["post-276012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-circular","tag-electronic-platform","tag-quote","tag-request-for-quote","tag-SEBI","tag-stockbrokers","tag-trade"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SEBI issues circular on Request for Quote; 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