‘Min 25% MF trade must be via RFQ’

Our Bureau Mumbai | Updated on October 06, 2021

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.

Published on October 06, 2021

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