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In finance news, the Securities and Exchange Board of India, or SEBI, has made changes to the rules regarding over-the-counter trades in corporate bonds. The revised rules now require companies to disclose OTC trades within 15 minutes of the transaction. This change aims to increase transparency in the bond market and ensure that all transactions are accurately reported in a timely manner. Companies will need to provide details such as the unique client code, volume, and price of the transaction to comply with the new regulations.
The SEBI also announced that it is looking to introduce a periodic call auction mechanism for illiquid corporate bonds. This mechanism aims to enhance price discovery and improve liquidity in the market for these less frequently traded bonds. It will involve conducting periodic call auctions at specified intervals for these securities to facilitate fair price determination and increase trading activity.
These updates come as part of SEBI’s ongoing efforts to strengthen regulatory oversight and improve transparency in the Indian securities market. The changes to the rules on OTC trades and the introduction of a call auction mechanism for illiquid corporate bonds are expected to have a positive impact on market integrity and investor confidence. By ensuring timely and accurate reporting of transactions and enhancing price discovery for illiquid securities, SEBI aims to create a more efficient and investor-friendly bond market in India.
