SEBI stipulates AIF’s minimum Transaction limit in Corporate Bonds through RFQ Platform
The Securities and Stock Exchange of India has stipulated that, effective 1st April, 2023, the Alternative Investment Funds (“AIFs”) must undertake at least 10% of their total secondary market trades in Corporate Bonds by value in a month by placing or seeking quotes on the Request for Quote (“RFQ”) platform.
It is further clarified that all transactions in Corporate Bonds wherein AIFs are on both sides of the trade must be executed through Request for Quote platform in ‘one-to-one’ mode. However, any transaction entered by an AIF in Corporate Bonds in ‘one-to-many’ mode which gets executed with another AIF, must be counted in ‘one-to-many’ mode and not in ‘one-to-one’ mode.
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