With a view to develop the Securitised Debt Instruments(SDIs) market and to improve transparency in the dealings of SDIs, SEBI vide circular dated January 07, 2014, has directed that all trades in SDIs (listed or unlisted) by Mutual Funds, Foreign Institutional Investors/sub-accounts/Qualified Foreign Investors/ Foreign Portfolio Investors, Alternative Investment Funds, Foreign Venture Capital Investors and Portfolio Managers shall be reported on the trade reporting platform of either NSE, BSE or MCX-SX, within fifteen minutes of the trade. All trades in SDIs (listed or unlisted) done between above specified entities shall necessarily be cleared and settled through the National Securities Clearing Corporation Limited (NSCCL) or the Indian Clearing Corporation Limited (ICCL) or MCX-SX Clearing Corporation Limited (MCX-SX CCL). The circular shall come into effect from April 01, 2014.
To ensure that the data is not duplicated, it has also advised that the reporting for a trade must be done by the buyer and the seller on the same platform to ensure matching of both sides of the trades.
SEBI had laid down the framework for public offer and listing of securitized debt instruments vide SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations, 2008 and had specified listing agreement for Securitized Debt Instruments. A few privately placed SDIs have already been listed on exchanges.
SEBI had earlier directed the intermediaries to report trades in Corporate Bonds (off market) on the trade reporting platform of exchanges and directed that trades shall be necessarily cleared and settled through the Clearing Corporation of the Stock Exchanges. This has helped in improving the transparency in trading of Corporate Bonds to a greater extent.