On Monday, capital markets regulator Sebi said payment mechanisms offered by banks and payment aggregators could be used to settle trades in debt securities executed on stock exchanges’ request for quote (RFQ) platforms.

Apart from the existing payment mechanism of Real Time Gross Settlement (RTGS) offered by banks, the Securities and Exchange Board of India (Sebi) said in a circular.

Stock exchanges are currently using the RTGS channel as a settlement for transactions executed on RFQ platforms involving listed corporate bonds, commercial paper and securitised debt instruments.

The clarification comes after stock exchanges and market participants sought clarification on whether payment mechanisms other than RTGS offered by banks or payment aggregators can be used to settle trades executed on the RFQ platform.

“To clarify, payment mechanisms provided by RBI-authorised banks/payment aggregators may, from time to time, be used to settle transactions executed on the RFQ platform, in addition to the existing payment mechanisms,” Sebi said.

This circular will come into effect immediately.

In November, Sebi introduced a registration and regulatory framework for online bond platform providers, stipulating that all orders for debt securities listed on online bond platforms must be routed through the stock exchanges’ RFQ platforms and cleared through their respective clearing houses.

Previously, the regulator allowed stockbrokers registered with the debt division of the stock exchange to bid on the RFQ platform on behalf of clients, in addition to the existing option to bid in a proprietary capacity.

Also, the regulator has amended the nominal value of listed debt securities and non-convertible redeemable preference shares issued on stock exchanges or OTC basis from Rs 10 lakh to Rs 1 lakh.