Brief Overview:
A comprehensive framework has been proposed to consolidate the previously fragmented rules governing secondary G-Sec transactions. It aims to enhance market efficiency, broaden participation, and strengthen transparency and risk management.
Technical Details:
Key Highlights
1) Unified rulebook: Consolidates multiple circulars into one framework for G-Sec secondary market transactions.
2) Wider access: Provides clearer access routes for retail investors, demat holders and non-resident investors.
3) Reporting discipline: Introduces tighter reporting and electronic trading requirements to support price discovery and oversight.
4) Market flexibility: Clarifies sale-before-receipt, when-issued trading and short selling.
5) Market safeguards: Formalises settlement, position limit, audit and compliance obligations.
6) Regulatory oversight: Enables publication of anonymised data and access restrictions for regulatory breaches.
7) Comments: To be submitted by 17th July 2026.
Takeaways:
The draft largely consolidates and rationalises the existing regulatory framework for secondary G-Sec transactions. If finalised, it is expected to enhance regulatory clarity and ease of implementation for market participants.
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