Sebi streamlines framework on centralised database for corporate bonds

Under this, it has provided an updated list of data fields to be maintained in the database along with the manner of filing the same, Sebi said in a circular

Topics
SEBI | corporate bonds | corporate bond market

Markets regulator Sebi on Friday streamlined the framework for centralised database for corporate bonds to provide further ease of access of information for investors.

Under this, it has provided an updated list of data fields to be maintained in the database along with the manner of filing the same, Sebi said in a circular.

The regulator has also specified responsibilities of parties involved, contents of the database and manner of submitting the information.

The regulator had in October 2013 mandated depositories to jointly create, host and maintain a centralised database of corporate bonds held in demat form.

“Pursuant to discussions with market participants, it has been decided to further streamline the database and provide further ease of access of information for investors,” Sebi said.

This new framework will be applicable for debt securities issued on or after August 1, 2021.

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With regard to depositories, Sebi said they need to continue to jointly create, host, maintain and disseminate the centralised database of corporate bonds held in demat form.

All historical data available in the database will continue to be hosted by the depositories.

They will have to ensure to have adequate systems and safeguards to maintain the integrity of data and to prevent manipulation of data. Each depository will have to synchronise the database in consultation with the other depositories.

The depository which receives information from an issuer will have to host the same as well as share it with the other depository for hosting within three working days from the date of receipt of the information.

Also, they will have to provide secure login credentials to issuers, stock exchanges, credit rating agencies and debenture trustees for updating and verifying requisite information in the corporate bond database within the required timelines.

Besides, depositories need to provide the information available with respect to the redeemable preference shares and securitised debt instruments, in a separate section within the database, in the form as available with them, after sharing the same with the other depository for synchronising and updating the data.

In respect of issuers, Sebi said they will have to provide details pertaining to issuer, issue, instrument classification and its detail, credit rating with name of credit rating agency and date of credit rating and default history information, among others, in the database at the time of allotment of the ISIN.

Further, depositories will have to verify the information as provided by issuer at the time of activation of ISIN (International Securities Identification Number).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, June 04 2021. 22:29 IST

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