TMI BlogGuidelines for providing dedicated Debt Segment on Stock Exchanges.X X X X Extracts X X X X X X X X Extracts X X X X ..... torily reported on reporting platforms at FIMMDA, BSE and NSE. The settlement for such transactions is different from that in equity markets or publicly issued debt securities. 2. Whereas the equity markets in India offer trading infrastructure comparable to the best available globally, the debt markets lack such infrastructure. In order to cater to the unique characteristics of debt markets, it has been decided to provide dedicated a debt segment on the stock exchanges. 3. The debt segment shall offer separate trading, clearing, settlement, reporting facilities and membership to deal in : (i) debt securities as defined in Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (ii) Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir clients. b. Institutional market - which shall be a market for non-publicly-issued debt instruments with a market lot size of minimum ₹ 1 crore. (iv) In addition to institutional investors, Direct Market Access (DMA) facility shall be extended to other investors to participate in Institutional market of debt segment. In this regard, the provisions as stipulated in SEBI circular MRD/ DoP/SE/Cir- 7 /2008 dated April 03, 2008, MRD/DoP/SE/Cir- 03 /2009 dated February 20, 2009 and CIR/MRD/DP/ 20 /2012 August 02, 2012 and modifications thereto shall be applicable. (C) Trading Rules: (i) The trading hours shall be from 9:00 hours to 17:00 hours to be in alignment with trading hours of government securities as issued by RBI. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guarantee. (E) Risk management framework: (i) For retail market, a uniform margin rate of 10% shall be applicable on debt instruments with rating of AA or above (or with similar rating nomenclature) by recognised credit rating agencies and 25% for all other debt instruments. Further, in case of shortages, there shall be compulsory close-out with a mark up of 5% in case of debt instruments which are assigned a credit rating of AA and above and 10% in case of other debt instruments. (ii) For institutional market, as and when settlement is done on DVP-II or DVP-III basis, appropriate margins may be prescribed after approval by SEBI. (iii) The clearing corporation shall specify appropriate risk management framework for each marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier, the transitional provisions shall be - a . Institutional market of debt segment: Any existing registered trading member and/or clearing member/self clearing member in derivative segment or currency derivatives segment desirous of trading or clearing trades in debt segment shall be permitted to trade or clear trades. b. Retail market of debt segment: Any existing registered stock broker/trading member and /or clearing member/self clearing desirous of trading or clearing trades in debt segment shall be permitted to trade or clear trades. (iv) The trading member, proprietary trading member, clearing member and self clearing member of debt segment shall have net worth and deposit as prescribed in SEBI (Stock Broker and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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