Centralized Database for Corporate Bonds/Debentures to help Indian debt market

SEBI has mandated that NSDL and CDSL to jointly create and co-host centralised database for corporate bonds and debentures. It may be available as early as January 2014 and will be accessible to everyone without any fees. SEBI move aims to strengthen the debt market in the country

The Securities and Exchange Board of India (SEBI) has issued a circular on "Centralised Database for Corporate Bonds/Debentures" on 22 October 2013 mandating both the depositories viz. National Securities Depository (NSDL) and Central Depository Services (CDSL) to jointly create, host, maintain and disseminate the centralized database ofcorporate bonds/debentures.  The depositories shall obtain the requisite information regarding the bonds/debentures from Issuers, Stock Exchanges, Credit Rating Agenciesand Debenture Trustees. The Database can be accessed by the public or any other users without paying any kind fees or charges, which will help to strengthen the debt market in the country. Depositories and stock exchanges shall create awareness among issuers and investors regarding the centralized database.
 

High Level Expert Committee on Corporate Bonds and Securitization" ("Dr. R.H. Patil Committee") had recommended creation of "Centralized Database of information regarding Bonds". While the information in respect of various bonds/debentures issued by issuers is available in a fragmented manner, it is felt that there is a need for having a comprehensive database on corporate bonds at a single place.
 

In the first phase, the bonds/debentures available in the demat form shall be considered. Subsequently, in co-ordination with Ministry of Corporate Affairs (MCA), the database in respect of bonds/debentures which are unlisted and in physical form will be considered.
 

Stock Exchanges shall access the database on daily basis and shall update the requisite information regarding the listed bonds/debentures, within the stipulated time. Credit Rating Agencies shall access the database and shall update the credit rating provided by the agency and the subsequent rating migrations. Debenture Trustees shall access the database to verify and shall update the information regarding default history by the issuer and other relevant information pertaining to Debenture Trustees. The information providers such as Stock Exchanges, Credit Rating Agencies and Debenture Trustees, who shall be provided secure logins shall update the information in the database on an ongoing basis.
 

For historical information with respect to debentures/bonds for which ISIN number is already obtained and bond/debenture is still outstanding (historical information), the Depositories shall by 01 December 01 2013 request the Issuers to provide the information. The Issuers shall provide the information to the Depositories by 01 January 2014 in the manner prescribed by Depositories.

 
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