New Guidelines to Streamline RFQ Platform Operations and Enhance Bond Market Transparency
New Delhi, May 18 – The Securities and Exchange Board of India (Sebi) has announced key regulatory changes aimed at simplifying trade execution on the Request for Quote (RFQ) platform and improving transparency in the corporate bond market.In a circular issued on Friday, Sebi said the method of calculating yield-to-price on the RFQ platform has been revised. Going forward, calculations will be based solely on scheduled due dates of payments rather than actual payment dates. This marks a shift from the existing practice that involves adjustments based on day count conventions, making the process less complex for market participants.
The simplified methodology is expected to facilitate smoother execution of trades on the RFQ platform by removing the need for day count-based calculations and enabling faster, more predictable pricing outcomes.
Mandatory Cash Flow Disclosures in Bond Database
In a parallel move to enhance market transparency, Sebi has made it mandatory for issuers of debt securities to disclose detailed cash flow schedules in the centralised corporate bond database. This includes all interest, dividends, and redemption payments.Issuers must provide this information at the time of ISIN activation and update it after the securities are listed. Moreover, any modifications to the disclosed cash flow must be updated within one working day, ensuring that investors have access to the most current data.
These regulations will take effect from August 18, 2025, and will apply not only to new issuances but also to existing ISINs for the remainder of their maturity.
Enhancing the RFQ Platform
Launched on BSE and NSE in February 2020, the RFQ platform facilitates multi-lateral negotiations in a centralised electronic format. It supports straight-through processing for clearing and settlement, enabling seamless execution of debt security trades. A broad range of debt instruments is traded on this platform, which is a critical tool for India’s fixed-income market.By introducing these changes, Sebi aims to make bond trading more accessible and data disclosures more robust, reinforcing investor confidence and operational efficiency across the market.