SEBI has increased the quantum of mandatory mutual funds’ trades in the secondary corporate bond market through the request for quote (RFQ) platform of stock exchanges to 25 per cent on a monthly basis from the current 10 per cent.
Similarly, MFs have to undertake minimum 10 per cent of their total secondary market trades by value (excluding inter scheme transfer trades) on monthly basis in commercial papers by seeking quotes through one-to-many mode on the RFQ platform, it added. The new norms will come into force from December 1.
SEBI has been taking various measure to deepen the bond market. Last July, it mandated MFs to undertake at least 10 per cent of their secondary market trades in corporate bonds through the RFQ platform.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.