SEBI mandates AIFs to carry out at least 10% trades in Corporate Bonds
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- By Chetan Kulasri
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- Last Updated on 3 February, 2023
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Circular No. SEBI/HO/AFD/PoD/P/CIR/2023/017, Dated 01.02.2023
Based on the recommendations of Alternative Investment Policy Advisory Committee (AIPAC), SEBI has mandated Alternative Investment Funds (AIFs) to undertake at least 10% of their total secondary market trades in corporate bonds by value in a month by placing/seeking quotes on Request for Quote (RFQ) platform.
This platform is meant for execution & settlement of trades. Further, SEBI has clarified that all transactions in Corporate Bonds where AIFs is on both the sides of the trade shall be executed through RFQ platform in ‘one-to-one’ mode
Earlier, SEBI required only Mutual Funds, PMS and Stock Brokers to carry out trades in corporate bonds on the RFQ platform, aiming to increase liquidity, transparency and disclosure requirements in secondary market trading. This circular shall be applicable w.e.f 01.01.2023.
Click Here To Read The Full Circular
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