Circular regarding minimum percentage of trades carried out by mutual funds through RFQ platform (Dated – 06.10.2021) – SEBI
View PdfCircular regarding minimum percentage of trades carried out by mutual funds through RFQ platform (Dated – 06.10.2021) – SEBI
- Based on the recommendations of Mutual Fund Advisory Committee (MFAC), in order to further increase the liquidity on exchange platforms, para 1(A)(i) of the aforementioned SEBI circular is modified as under:
- On monthly basis, Mutual Funds shall undertake minimum 25% of their total secondary market trades by value (excluding Inter Scheme Transfer trades) in Corporate Bonds by placing/seeking quotes through one-to-many mode on the Request for Quote (RFQ) platform of stock exchanges and
- On monthly basis, Mutual Funds shall now undertake minimum 10% of their total secondary market trades by value (excluding Inter Scheme Transfer trades) in Commercial Papers by placing/seeking quotes through one-to-many mode on the Request for Quote (RFQ) platform of stock exchanges.
- The percentages as specified above shall be reckoned on the average of secondary trades by value in immediate preceding three months on rolling basis.
- All other conditions specified in the above mentioned circular remain unchanged.
- Mutual Funds are permitted to accept the Contract Note from the brokers for transactions carried out in One to One (OTO) and One to Many (OTM) modes of RFQ platform.
- Applicability of the circular
- This circular shall come into force with effect from December 1, 2021. ETC.,
