All trades in securitised debt instruments or SDIs would be reported on the trade reporting platform of either NSE, BSE or MCX-SX, within fifteen minutes of the trade, SEBI said
Market regulator Securities and Exchange Board of India (SEBI) has directed participants to report within 15 minutes, trades in securitised debt instruments (SDIs) on the trade reporting platforms of exchanges from 1 April 2014. SEBI also said all clearing and settlement of SDI trades should be done through clearing corporations.
In a circular issued on 7th January, the market regulator, with a view to develop the SDIs market and to improve transparency in the dealings of these instruments, said, "all trades in SDIs (listed or unlisted) by mutual funds, foreign institutional investors (FIIs), sub-accounts, qualified foreign investors (QFIs), foreign portfolio investors (FPIs), alternative investment funds (AIFs), foreign venture capital investors (FVCIs) and portfolio managers shall be reported on the trade reporting platform of either NSE, BSE or MCX-SX, within fifteen minutes of the trade."
"To ensure that the data is not duplicated, it has also advised that the reporting for a trade must be done by the buyer and the seller on the same platform to ensure matching of both sides of the trades," SEBI said.
Securitised debt instruments (SDI) are created out of a pool of loans, such as home loans, commercial loans, auto loans and loans on credit cards. Investors of these instruments are paid using money collected from the loan instalments.
SEBI has also directed exchanges to provide data on issuer name, international security identification number, face value, maturity date, current coupon rate, last price reported, last amount reported, last yield (annualised) reported, weighted average yield/ price, total amount reported and rating of SDI.
While asking exchanges and clearing corporations to amend their by-laws, rules and regulations for compliance, SEBI said all SDI trades have to necessarily be cleared and settled through the National Securities Clearing Corp Ltd or the Indian Clearing Corp Ltd or MCX-SX Clearing Corp Ltd.
Earlier, SEBI had directed the intermediaries to report trades in corporate bonds (off market) on the trade reporting platform of exchanges and directed that trades shall be necessarily cleared and settled through the clearing corporation of the stock exchanges. According to the market regulator, this has helped in improving the transparency in trading of corporate bonds to a greater extent.
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Janardhan Trading Co, Central India General Agents, Birla Holdings and Sukriti Education Society, the four promoters of Digjam admitted that there was a delay of 101 days in filing requisite disclosures and thus paid Rs13.27 as settlement charges to SEBI
Market regulator Securities and Exchange Board of India (SEBI) said, four promoters of textile company Digjam have settled the matter related with delay in compliance of disclosure rules after paying Rs13.27 lakh as settlement charges.
SEBI said, Digjam promoters -- Janardhan Trading Co, Central India General Agents, Birla Holdings and Sukriti Education Society -- had failed to make timely disclosures to the stock exchanges regarding an increase in their voting rights in the company.
They approached the SEBI to settle the case under the regulator's consent order mechanism. The entities had proposed to pay Rs13.27 lakh as settlement charges.
Accepting the proposed settlement terms, SEBI in an order issued on 31st December said, the delayed compliance with the norms "is settled according to the consent terms and SEBI shall not initiate any enforcement action against the applicants for the said default".
The four promoters had admitted that there was a delay of 101 days in filing requisite disclosures, the order said.
According to them, on account of non-payment of dividend by Digjam, voting rights accrued upon applicants with respect to 14.94 lakh preference shares increased their voting rights from 33.92% to 42.72% of the paid up capital of the company, it added.
The settlement has been approved by SEBI's High Powered Advisory Committee (HPAC) and panel of whole time members.
In case any representations made by the entities are found to be untrue, then enforcement action could be initiated.