The People's Bank of China plans to regulate interbank bond market settlement, reported Shanghai Securities News on Thursday citing sources among interbank bond traders.

The move is aimed to further strengthen the interbank bond market, lowering the risks in bond trading settlements and make bogus transactions less likely, according to the SSN report.

China Securities Depository and Clearing Corp has given verbal notice to institutions of the interbank bond market, requiring that payment after delivery and delivery after payment will be gradually abolished.

Traders said regulators have given a detailed timetable for transition to delivery versus payment-only settlement, requiring that all interbank bond transactions will be settled as DVP by the beginning of October.

Analysts said that the move was made after insider trading cases.