The Securities and Exchange Board of India (SEBI) has made it easier for companies to share information about their bond payments. This step is meant to help investors and companies understand bond-related data more clearly.
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What Has Changed
SEBI has simplified how companies show their cash flow — which means the money they will pay as interest or when returning the money after bonds mature. Earlier, companies had to use complicated methods that involved counting the exact number of days between payment dates. Now, the rules are simpler.
From now on, companies will use only the scheduled due dates mentioned in their payment plans. They don’t need to count the exact number of days or actual payment dates when calculating the return, or yield, of a bond.
This change will make it easier for everyone to understand how much they can earn by investing in bonds. It removes confusion caused by different ways of calculating bond returns.
More Transparency
SEBI has also made it mandatory for companies to share their full payment schedule when they issue a new bond. This includes all future payments such as interest, dividends (if any), or the final payment when the bond matures.
This schedule must be submitted:
- When the bond gets its ISIN (a unique code for each bond).
- After the bond is listed on the market.
Once submitted, this information should be kept up to date. If anything changes — like a payment date or amount — the company must update the database within one working day. This rule will help keep the system transparent and reduce mistakes.
When Do These Changes Start
The new rules will get in action from August 18, 2025. They will apply to:
- All new bonds issued after that date.
- Existing bonds, for whatever time is left until they mature.
This provide companies with enough time to adjust their system and follow the new rules.
What Is the RFQ Platform
The Request for Quote (RFQ) platform is an online tool launched in 2020. It is used to buy and sell different kinds of debt securities, including corporate bonds. The platform was set up by BSE and NSE.
On this platform, buyers and sellers can talk, agree on a price, and complete the deal all in one place. It makes trading faster and more efficient.
With SEBI new changes, using the RFQ platform will become even easier. Calculations will be simpler. Information will be more reliable. And trades will be more transparent.
Why These Changes Matter
Corporate bonds are one way for companies to borrow money from the public. When people invest in these bonds, they want to know exactly when and how much they’ll get paid.
These changes by SEBI will help:
- Investors make better decisions.
- Companies follow clear and uniform rules.
- Reduce confusion and chances of error.
- Improve trust in the corporate bond market.
This is another step by SEBI to make India’s financial system more modern, investor-friendly, and transparent. As more people in India look for safe investment options, such changes make bonds a more attractive and understandable choice.
