NOTICE
CSE/Notices/SEBI/2012/063
March
22, 2012
Trading members are hereby informed that the Exchange has received a Circular from SEBI vide Ref. No. Cir/IMD/DF/8/2012, dated March 05, 2012 regarding Clearing and Settlement of OTC trades in Commercial Paper (CPs) & Certificates of Deposit (CDs). The contents of the said Circular are reproduced hereunder for information of the trading members.
Quote :-
CIRCULAR
Cir. /IMD/DF/8/2012
March 05, 2012
All Intermediaries
registered with SEBI under Section 12 of the SEBI Act. (Through the stock
exchanges for stock brokers, sub brokers, depositories for depository
participants, custodians for FIIs and FVCIs, AMFI for Asset Management
Companies.)
Dear Sir/ Madam,
Sub: Clearing and
Settlement of OTC trades in Commercial Paper (CPs) & Certificates of Deposit
(CDs)
1. SEBI vide circular No. CIR/IMD/DF/6/2010 dated July 30, 2010 made it mandatory for that all SEBI Regulated entities shall report their OTC transactions in CDs and CPs on the FIMMDA reporting platform within 15 minutes of the trade for online dissemination of market information with effect from August 16, 2010.
2. It has now been
decided that all SEBI regulated entities shall settle their OTC trades in CDs
and CPs on the lines of already existing process for settlement of OTC trades
in corporate bonds, through National Securities Clearing Corporation Limited
(NSCCL) and Indian Clearing Corporation Limited (ICCL) with effect from April
01, 2012.
3. All transactions
cleared and settled in terms of this circular will be subject to such
norms as may be
specified by NSCCL and ICCL.
4. This circular is
issued in exercise of powers conferred by sub-section (1) of section 11 and
section 11A of the Securities and Exchange Board of India Act, 1992, to protect
the interests of investors in securities and to promote the development of, and
to regulate the securities market.
5. This circular is
available on SEBI website at www.sebi.gov.in
under the categories “Legal
Framework” and “Corp Debt Market”.
Yours faithfully,
Maninder Cheema
Deputy General Manager
+91-22-2644-9754
Unquote: -
Trading
Members are requested to take note of the aforesaid SEBI guideline.
M.A.V. Raju
Deputy General Manager