IND SEBI Request for Quote Platform

Updated on: Jan 17, 2025

Latest Event


  • Jan. 2025 IND NSE Confirmation of Entity Type
  • On Jan. 13, 2025, IND NSE said RFQ participants are required to confirm their entity type as per the process defined in annexure, deadline for submission is Feb. 15, 2025.
  • Participants must complete this process to ensure continued access to RFQ platform.
  • Document dated Jan. 13, 2025, received from IND NSE Jan. 14, summarized Jan. 16.

On Oct. 19, IND SEBI updated on changes to platform permissions.

  • IND SEBI allowed stock brokers registered under the debt segment of stock exchanges to place/seek bids on Request for Quote (RFQ) platform on behalf of client(s).
  • Follows IND BSE launch of RFQ platform for debt securities, see rule #71326, and IND SEBI specified percentage of corporate bond trades through RFQ, see #123749.
  • Key Points
  • RFQ is a platform that enables multilateral negotiations on a centralized online trading platform with straight through processing of clearing, settlement to complete trades.
  • Decided after representations from participants to permit stock brokers to place bids on behalf of clients to facilitate wider market participation in corporate bond market.
  • Stock exchanges are directed to put in place the necessary infrastructure for access and use of the platform by the participants including stock brokers.
  • They must also issue circular(s) covering the modalities for operational aspects and bring the provisions of this circular to the notice of SEBI registered stock brokers.
  • Effectiveness
  • Effective Jan. 1, 2023.
  • Oct. 20, 2022 Press Release
  • On Oct. 20, 2022, IND SEBI issued a press release on allowing brokers to place bids.
  • Jan. 2023 Mode of Settlement
  • On Jan. 9, 2023, IND SEBI issued a circular containing clarification and directions regarding mode of settlement for trades executed on request for quote (RFQ) platform.
  • Clarified that, in addition to the existing payment mechanisms, payment mechanisms provided by banks or payment aggregators authorized by IND RBI, may be used.
  • Specifically, for the settlement of trades that are executed on the RFQ platform.
  • Directed stock exchanges and clearing firms to put in place necessary infrastructure.
  • Also, directed them to: bring provisions of this circular to the notice of the stock brokers, also disseminate same on their websites; and make necessary amendments.
  • That is, amendments to relevant bye-laws, rules, regulations for the implementation of these directions to achieve uniformity in approach and communicate to IND SEBI.
  • This circular is issued under s 11 of Securities and exchange board of India act 1992.
  • Also, this circular shall come into force with immediate effect on/from Jan. 9, 2023.
  • Feb. 2023 Alternative Investment Funds
  • On Feb. 1, 2023, IND SEBI issued a circular regarding alternative investment fund's (AIFs) transactions in corporate bonds through the request for quote (RFQ) platform.
  • Stipulated AIFs shall undertake at least 10% of their total secondary market trades in corporate bonds by value in a month by placing/seeking quotes on the RFQ platform.
  • In addition, IND SEBI clarified that all corporate bond transactions wherein AIF(s) is/are on both sides of trade shall be executed via RFQ platform in one-to-one mode.
  • Any corporate bond transactions by an AIF in one-to-many mode which get executed with another AIF, shall be counted in one-to-many mode, and not in one-to-one mode.
  • Stated the aforesaid requirement shall come into force with effect from Apr. 1, 2023.
  • Feb. 2024 Funds Settlement Mechanism
  • On Feb. 19, 2024, IND ICCL announced it has implemented several funds settlement mechanism and on-boarded Phi Commerce Private Limited for payment services.
  • The fund settlement mechanisms it has provided include for the settlement of RFQ and over the counter (OTC) include a real time gross settlement (RTGS) channel.
  • As well as a national electronic fund transfer (NEFT) channel and enabled a UPI mechanism for RFQ deals settlement which is operational from Mar. 1, 2024.
  • Jan. 2025 IND NSE Confirmation of Entity Type
  • On Jan. 13, 2025, IND NSE said RFQ participants are required to confirm their entity type as per the process defined in annexure, deadline for submission is Feb. 15, 2025.
  • Participants must complete this process to ensure continued access to RFQ platform.
  • Document dated Jan. 13, 2025, received from IND NSE Jan. 14, summarized Jan. 16.
Regulators
IND ICCL; IND NSE; IND SEBI
Entity Types
B/D; Corp; Exch; Inv Co
Reference
Cir 03/2025, NSE/COMP/66103, 1/13/2025; Nt 20240219-45, 2/19/2024; Cir SEBI/HO/AFD/PoD/P/CIR/2023/017, 2/1/2023; Cir SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/9, 1/9/2022; PR 33/2022, 10/20/2022; Cir SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/142, 10/19/2022; citation: Securities and exchange board of India act 1992;
Functions
Compliance; Financial; Legal; Operations; Settlement; Technology; Trading
Countries
India
Category
State
N/A
Products
Corporate; Fund Mgt; Payments; Securities
Rule Type
Final
Regions
AP
Rule Date
Oct 19, 2022
Effective Date
Feb 15, 2025
Rule ID
151187
Linked to
N/A
Reg. Last Update
Jan 13, 2025
Report Section
International