SEBI issued the circular regarding Simplification of operational process and clarifying regarding the cash flow disclosure in Corporate Bond Database pursuant to review of Request for Quote (RFQ) Platform framework.
The following has been stated
Simplification of Yield to Price Computation
Prior method: Yield to price was computed by adjusting cash flow dates based on the day count convention.
New approach: No adjustment for day count convention; cash flows will be based strictly on the due date as per the cash flow schedule, not the actual payment date.
Insertion in NCS Master Circular:
Clause 9 added to Chapter XXII:
“In order to simplify the process of yield to price computation for non-convertible securities, cash flow dates… shall not be adjusted for day count convention… based on the due date of payment as per the cash flow schedule and not as per the date of payment.”
Disclosure of Cash Flow in Centralized Bond Database
Regulatory Reference:
Clause 3.3.34 of Schedule I of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 mandates disclosure of cash flow in the offer document using the day count convention.
Issue Identified:
Currently, cash flow schedule is not captured in the centralized corporate bond database.
New Requirement:
Addition of Paragraph 57 in Annex-XIV-A of the NCS Master Circular:
Cash flow schedule regarding payment of interest/ dividend/ redemption in the centralized corporate bond database at the time of activation of ISIN in the following format:
| Sr. No. | Particulars | Due Date | Payment date as per day count convention |”
Updates required:
Any change in cash flow info must be updated within one working day in the centralized database.
This circular shall come into force with effect from August 18, 2025
Link – https://www.sebi.gov.in/legal/circulars/may-2025/simplification-of-operational-process-and-clarifying-regarding-the-cash-flow-disclosure-in-corporate-bond-database-pursuant-to-review-of-request-for-quote-rfq-platform-framework-_94018.html
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