Trades in securitised debt instruments (both listed and unlisted) should be reported within 15 minutes on the trade reporting platforms of exchanges (NSE, BSE or MCX-SX) from April 1, 2014, market regulator SEBI said on Tuesday.

Securitised debt instruments (SDI) are those that are created out of a pool of loans, such as home loans, commercial loans, auto loans and loans on credit cards. Investors of these instruments are paid using money collected from the loan instalments. Mutual funds, FIIs/sub-accounts/ qualified foreign investors/ foreign portfolio investors, alternative investment funds/ foreign venture capital investors and portfolio managers trade in these instruments.

Data on issuer name

SEBI has also directed exchanges to provide data on issuer name, international security identification number, face value, maturity date, current coupon rate, last price reported, last amount reported, last yield (annualised) reported, weighted average yield/ price, total amount reported and rating of SDI.

The move will help in developing the securitised debt instruments market and improve transparency.

Exchanges also have to provide offer documents/ continuous disclosures and other additional information pertaining to the trade/ reporting on their Web sites.

All SDI trades, including those done between a SEBI-regulated entity (mutual funds and the like) and RBI-regulated entity (banks, NBFCs, for instance) have to necessarily be cleared and settled through the National Securities Clearing Corporation Ltd or the Indian Clearing Corporation Ltd or MCX-SX Clearing Corporation Ltd.

SEBI has directed exchanges and clearing corporations to amend their by-laws, rules and regulations for compliance.

It may be recalled that IFMR Capital listed the senior securities of IFMR Capital MosecTM XXII on the BSE in January 2013 — the first instance of listing of securitised debt in India.

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