SEBI vide its circular date 1st Feb 2023, has mentioned that 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.
Further, in terms of SEBI Circular dated October 19, 2022, quotes on RFQ platform can be placed to an identified counterparty (i.e. ‘one-to-one’ mode) or to all the participants (i.e. ‘one-to-many’ mode). In this regard, it is clarified that all transactions in Corporate Bonds wherein AIF(s) is on both sides of the trade shall be executed through RFQ platform in ‘one-to-one’ mode. However, any transaction entered by an AIF in Corporate Bonds in ‘one-to-many’ mode which gets executed with another AIF, shall be counted in ‘one-to-many’ mode and not in ‘one-to-one’ mode.
The aforesaid requirement shall come into force with effect from April 01, 2023.
Link of the circular: https://www.sebi.gov.in/legal/circulars/feb-2023/transaction-in-corporate-bonds-through-request-for-quote-rfq-platform-by-alternative-investment-funds-aifs-_67744.html
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