Depositories to jointly create database for bonds/debentures

Direction follows recommendations made to Sebi to create a 'Centralised Database' to provide comprehensive information on corporate bonds

To bolster debt market in the country, Sebi today asked depositories NSDL and CDSL to jointly create and maintain a centralised database of corporate bonds and debentures, which can be accessed by the general public and others free of cost.

The two depositories, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), have also been asked to collect requisite information from issuers of bonds, stock exchanges, credit rating agencies and debenture trustees to create such a database.

The direction follows recommendations made to Sebi by a high-level expert committee on corporate bonds and securitisation, which has suggested creation of a "Centralised Database" to provide comprehensive information on corporate bonds to various market participants.

At present, the information in respect of various bonds/debentures issued is available in a fragmented manner and available at multiple sources such as websites of credit rating agencies, depositories, stock exchanges, among others.

"Sebi has mandated both the depositories viz NSDL and CDSL to jointly create, host, maintain and disseminate the centralised database of corporate bonds/debentures," the market regulator said in a statement today.

 As per Sebi norms in this regard, the depositories would maintain and disseminate the information in dematerialised form or electronic form. The database for such unlisted securities and provision of data in physical form would be subsequently considered, Sebi said.

The database would information such as issuer details type of issuer and description of the instrument issued.

Further, as per the norms, issuers would have to provide requisite information to the depositories in stipulated format when they approach the depositories, they would have to enter into agreement with the depositories to dematerialise their bonds/debentures, and provide details regarding allotment and redemption of securities and any variations.

Among others, stock exchanges will have to access the database on daily basis and update the requisite information regarding the listed bonds/debentures.

Sebi said in respect of debentures/bonds for which new ISIN (International Securities Identification Number) will be allotted on or after December 1, 2013, the information has be provided by the issuer at the time of application.

"In case of any changes/updation to the information, as available in the database, the issuer must promptly inform the depositories and the information providers such as stock exchanges, credit rating agencies and debenture trustees shall update the same," Sebi said.

Those who presently have the ISIN would have to provide the information by December 1, 2013.

Besides, Sebi has asked the depositories to provide the details available with respect to the redeemable preference shares and securitised debt instruments, in a separate section within the database.