Market regulator SEBI simplifies the operational process and provides clarity in cash flow disclosures in the corporate bond database after reviewing the Request for Quotation (RFQ) platform framework. In its latest announcement, the regulator performs pre-price calculations on the RFQ platform. Now only the due dates mentioned in the cash flow schedule (rather than the actual payment date) can be used for these calculations.
This move is intended to simplify and simplify the trade execution process on the RFQ platform. As part of the simplification, the yield now will be based on the planned deadline without any adjustments to date count conventions.
Currently, a more complex approach is used to calculate the yield of debt securities, which takes into account the actual payment date and the required date adjustment. In addition to simplifying earnings calculations, SEBI also puts forward requirements for mandatory cash flow disclosures in centralized corporate bond databases.
Under this, the issuer will be required to provide a detailed cash flow schedule when ISIN is activated and after the securities are listed – covering interest, dividends or redemption payments. To maintain transparency and accuracy, this information should be updated regularly in the database. SEBI also stipulates that any changes to the cash flow schedule must be updated within one business day.
The Securities and Exchange Commission of India (SEBI) (SEBI) said in a notice on Friday that the new regulations will apply to all new debt security issues starting August 18, 2025, and also to existing ISINS to ensure their remaining maturity.
Launched in BSE and NSE in February 2020, RFQ is an electronic platform that enables multilateral negotiations to be conducted on a centralized online trading platform and processed through direct clearing and settlement to complete transactions. The RFQ platform can be used to trade various debt securities.
