Categories: Economy

SEBI Releases Uniform Format for OTC Trades In Non-Convertible Securities

Capital markets regulator SEBI came out with a uniform format for reporting over-the-counter (OTC) trades in listed non-convertible securities. 

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Why This Development:

The development comes after Sebi observed that information on OTC trades in listed non-convertible securities provided to the stock exchanges by the investors is incomplete and inaccurate.

This, in turn, amounts to incorrect and distorted information being displayed on the exchanges’ websites.

What Has Been Said:

“In order to address the issue, it has been decided all OTC trades shall be reported in a uniform format,” the Securities and Exchange Board of India (Sebi) said in a circular.

Need Of This:

Under the format, information pertaining to deal type — whether brokered or direct — ISIN, listed or unlisted security, issuer name, coupon rate, issue description, traded price, traded yield, trade date and time, settlement date, settlement status and reported trade executed on RFQ (Request For Quote) platform will have to be disclosed.

The new guideline would come into force from January 1, 2023. Sebi asked stock exchanges to monitor the compliance of the guideline and bring to the notice of the regulator periodically, discrepancies in reporting of OTC trades by investors.

How The OTC Worked:

OTC trades are generally trades executed between two market entities without others being aware of the price at which the transaction was effected.

Piyush Shukla

Recent Posts

IPL 2025 Schedule: BCCI Announces IPL Schedules for 2025, 2026, and 2027 Seasons

The Board of Control for Cricket in India (BCCI) has made a bold and significant…

13 hours ago

Which District of Madhya Pradesh is Famous for Rang Panchami Festival?

Madhya Pradesh, a state rich in culture and traditions, celebrates many colorful festivals. One of…

13 hours ago

Ustad Bismillah Khan Yuva Puraskar For 2022 and 2023

The Ustad Bismillah Khan Yuva Puraskar (UBKUP) is a prestigious award instituted by the Sangeet…

13 hours ago

Top 10 Most Sustainable Economies in 2024: India’s Position Explained

The Sustainable Trade Index 2024, jointly published by the Hinrich Foundation and IMD, highlights the…

13 hours ago

Who is Known as the Frontier Gandhi?

The title "Frontier Gandhi" refers to Khan Abdul Ghaffar Khan, a prominent leader from British…

14 hours ago

India Hosts First Global Cooperative Conference in 130 Years

India will host the International Cooperative Alliance (ICA) Global Cooperative Conference in New Delhi from…

15 hours ago