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Circular on Transaction in Corporate Bonds/Commercial Papers through RFQ platform and enhancing transparency pertaining to debt schemes

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To enhance the transparency, additional guidelines have been provided which includes Mutual funds shall take at least 10 percent of their total secondary market trades by value monthly in the corporate bonds through RFQ platform by placing quotes and seeking one to one mode; All the transactions relating to corporate bonds and commercial papers where the mutual funds are involved shall be carried out through RFQ platform on a one to one basis; Any transaction entered by mutual fund in Corporate Bonds in one to many modes and gets executed with another mutual fund shall also be counted for the aforesaid 10% requirement. Further, it is decided for debt schemes that such disclosure shall be done on fortnightly basis within 5 days of every fortnight. This Circular shall come in force from October 01, 2020.

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