By Siddhant Mishra
The Securities and Exchange Board of India (Sebi), in a circular issued on Monday, clarified that all payment mechanisms provided by banks and payment aggregators authorised by the Reserve Bank of India (RBI) to be used for settlement of trades executed on the Request for Quote or RFQ platform.
At present, exchanges use the RTGS channel as the mode of settlement for trades executed on the RFQ platform, as regards listed corporate bonds, commercial papers, and securitised debt instruments, the circular said.
The regulator had, in a November 2022 circular, stipulated that all orders pertaining to listed debt securities placed on an online bond platform would have to be routed through the RFQ platform of the recognised exchange(s) and settled through the respective clearing corporation.