Reporting of Inter-Scheme Transfers of Corporate Bonds by Mu

Last updated: 01 August 2009

Notice Date : 31 July 2009

Reporting of Inter-Scheme Transfers of Corporate Bonds by Mutual Funds on SEBI Authorized Trade Reporting Platforms at NSE/ BSE/ FIMMDA

SEBI/IMD/DOF-1/BOND/Cir-3/2009

July 31, 2009

To:

All Mutual Funds, Asset Management Companies (AMCs),

Association of Mutual Funds in India (AMFI),

All Stock Exchanges and

FIMMDA

Dear Sirs,

Sub: Reporting of Inter-Scheme Transfers of Corporate Bonds by Mutual Funds on SEBI Authorized Trade Reporting Platforms at NSE/ BSE/ FIMMDA

1. SEBI vide circulars No. SEBI/ CFD/DIL/BOND/1/2006/12/12 dated December 12, 2006 and No. SEBI/CBM/ BOND/1/2007/02/03 dated March 01, 2007 and letter dated July 27, 2007 to FIMMDA authorized BSE, NSE and FIMMDA to set up and maintain reporting platforms to capture information related to trading in corporate bonds.

2. It has now been decided that, the Mutual Funds, while reporting their trades in corporate bonds shall also report their inter-scheme transfers on the aforesaid platforms. The Mutual funds, or the brokers/ intermediaries acting on their behalf shall ensure that inter-scheme transfers are indicated separately while reporting the same.

3. The authorized stock exchanges and FIMMDA shall put in place suitable systems to capture the aforesaid inter-scheme transfers. Such trades shall be reported distinctly from other OTC trades. The dissemination of trade information shall display segregated information on (a) OTC Trades (b) Trades on Exchanges (c) Inter-scheme transfers by Mutual Funds.

4. All other terms of the past circulars, viz., No. SEBI/ CFD/DIL/BOND/1/2006/12/12 dated December 12, 2006 and No. SEBI/CBM/ BOND/1/2007/02/03 dated March 01, 2007 remain unchanged.

5. The circular shall come into effect from August 10, 2009.

6. All stock exchanges are advised to bring the contents of this circular to the notice of their members.

7. This circular is issued in exercise of powers conferred by sub-section (1) of section 11 and section 11A of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

8. This circular is available on SEBI website at www.sebi.gov.in under the category “Legal Framework”.

Yours faithfully,

Maninder Cheema