SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News SEBI asks PMS to use RFQ platform for minimum 10% trades in corporate bonds

    SEBI asks PMS to use RFQ platform for minimum 10% trades in corporate bonds

    Recently, SEBI hiked the minimum trade requirement through the RFQ platform for mutual funds from 10% to 25%
    Team Cafemutual Dec 10, 2021

    Markets regulator SEBI has directed portfolio management services (PMS) to undertake minimum 10% of their monthly secondary market trades in corporate bonds through the Request for Quote (RFQ) platform of stock exchanges.

    SEBI said the move will boost liquidity on exchange platforms as well as enhance transparency pertaining to debt investments by PMS.

    The rule will come into effect from April 1, 2022.

    Similar regulation is already in place for mutual funds. Recently, SEBI enhanced the minimum trade requirement through the RFQ platform for mutual funds from 10% to 25%.

    The RFQ platform allows interaction amongst the market participants who wish to negotiate transactions amongst themselves. This platform is a participant-to-participant model where an initiator may request other participants for a quote in corporate bonds, commercial papers, certificates of deposit, government securities or state development loans.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.