National Stock Exchange, the Leading bourse on 11 May 2013 launched the country’s first dedicated debt trading platform.
The new Platform launched is awaiting the market regulator SEBI’s guidelines for allowing participation of mutual funds, insurance companies and pension funds. NSE had recently received approval from SEBI to launch the debt segment.
Function of the Debt Trading Platform
• The debt trading platform is supposed to provide retail investors an opportunity to invest in corporate bonds on a liquid and transparent exchange platform.
• Banks and primary dealers are the first to enter and they will provide enough liquidity in the debt segment.
• The mutual funds, insurance companies and pension funds are also expected to participate after guidelines for the same are issued.
The Debt Trading exchange platform is an innovation, which has been launched after intensive feedback from market participants. It is similar to RBI’s NDS-OM, where Government securities are traded on a transparent platform