In the case of CPs, the issuing and paying agents (IPAs) are required to report the issue details on the NDS within three days of issue. CD issuances are reported on a fortnightly basis by banks. However, there is no formal reporting of secondary market trades of CPs and CDs in any form, resulting in lack of transparency in the market.
Further, settlement of trades in CPs and CDs is done bilaterally with no system of DvP (Delivery vs. Payments) in place. This exposes the participants to settlement risk. 56.