Clearing & Settlement Mechanism under Liquidity Window Facility for Debt Securities

Notification No. 20251030-56 dated October 30, 2025

Applicable Act/Rule: Securities and Exchange Board of India (SEBI) – Framework under Regulation 15, SEBI (Issue and Listing of Non‑Convertible Securities) Regulations, 2021

SEBI had earlier, via its circular dated October 16, 2024 (SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/141), introduced the “Liquidity Window Facility” for investors in listed debt securities. The objective was to enhance liquidity in the corporate debt market by allowing investors a put-option to sell back securities to issuers at pre-specified intervals.

The Bombay Stock Exchange (BSE) has issued operational guidelines (Circular 20251024-25 dated October 24, 2025) for the Liquidity Window mechanism. The current notice reiterates implementation requirements for all members and participants.

  • The facility will function through a separate “Liquidity Window” on BSE’s IBBS platform.
  • The Indian Clearing Corporation Ltd. (ICCL) will publish the settlement calendar one day before bidding opens.
  • Members and market participants must follow the operational guidelines enclosed with the notice for smooth execution and settlement.

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