The Securities and Exchange Board of India (Sebi) has issued a new mandate
requiring Foreign Portfolio Investors (FPIs) to conduct at least 10% of
their corporate bond trades through the Request for Quote (RFQ) platform.
The move aims to enhance transparency and promote fair pricing in the
corporate bond market. By implementing this regulation, Sebi intends to
provide a level playing field for all market participants and mitigate the
risk of information asymmetry. The RFQ platform facilitates a more
efficient and competitive bond trading process, which is expected to
benefit investors and foster confidence in India’s financial markets.
requiring Foreign Portfolio Investors (FPIs) to conduct at least 10% of
their corporate bond trades through the Request for Quote (RFQ) platform.
The move aims to enhance transparency and promote fair pricing in the
corporate bond market. By implementing this regulation, Sebi intends to
provide a level playing field for all market participants and mitigate the
risk of information asymmetry. The RFQ platform facilitates a more
efficient and competitive bond trading process, which is expected to
benefit investors and foster confidence in India’s financial markets.
