Reporting of trades in non-convertible securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 - SEBI - SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/159

CIRCULAR SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/159 November 24, 2022 To, Entities buying, selling, trading or otherwise dealing in listed Non-convertible Securities Madam/ Sir, Sub: Reporting of trades in non-convertible securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 1. SEBI, vide Operational Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021 (as amended from time to time), has prescribed the requirements pertaining to operational and other aspects relating to the issue and listing of Non-convertible Securities. In the said Operational Circular, Chapter XVI on Reporting of Trades , inter alia , contains provisions relating to reporting, clearing and settlement of OTC trades by all person(s) dealing in non-convertible securities. 2. It is observed that information on OTC trades in listed Non-convertible Securities provided to the Stock Exchange(s) by the investors is incomplete and/ or inaccurate. This, in turn, amounts to incorrect and distorted information being displayed on the Stock Exchanges websites. In order to address the issue, it has been decided all OTC trades shall be reported in a uniform format specified in (3) below. 3. Consequently, paragraph 1.3 of Chapter XVI, titled, Reporting of Trades , of the Operational Circular shall be replaced as follows: 1.3. The reporting of OTC trades in non-convertible securities shall be made by all person(s) dealing in such securities irrespective of whether they are SEBI registered intermediaries or otherwise, as per below mentioned format: Table 1: Trade and Settlement data of debt securities Deal type* (brokered/ direct/IST ISN Listed unlisted security Issuer name Coupon (%) Issue description Traded price i n Rs. Trade yield (%) Yield type (YTC/ YTP/ YTM)# Trade value in Rs. lakh (in face value term) Trade date time Settlement Settlement status^ (settled/ not settled/ pending Reported trade/ trade executed on RFQ platform *Deal Type: Direct - Deals among participants done directly and reported by participants; Brokered - deals done/ transacted through broker and reported by participants; IST - Inter-Scheme Transfers - Deals within schemes of same mutual fund/ Insurance Company; #Yield Type: The dealer/ user calculate yield and select the type at the time of reporting; ' Settlement status will be updated at EOD. 4. Stock Exchanges shall monitor the compliance of this circular / chapter XVI of the Operational circular and bring to the notice of SEBI, periodically, discrepancies in reporting of OTC trades by investors. 5. The provisions of this circular shall come into force from January 01, 2023. 6. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 , read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 7. This Circular is available at www.sebi.gov.in under the link Legal Circulars . Yours faithfully, Pradeep Ramakrishnan General Manager Department of Debt and Hybrid Securities +91-22-26449246 pradeepr@sebi.gov.in