You may soon get to buy corp bonds online (1) March 16, 2009
Posted by dhirendra1972 in Allotment Application, Introduction of Electroci Application, Physical Application, Raise Capital, Raise Funds, Taking Off Bond Market.Tags: Agreement, Bond Market, Capital, Corporate Bond Market, Debt Security, Electonic Route, Funds
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Good morning friends. There will be a good idea for everyone especially to those corporations who wants to buy bonds. With reference to The Economic Times bonds can be bought now online. That will be a good news.
Investors may soon be able to apply for public-debt issues over the internet. Sebi is planning to issue guidelines for electronic issuances in the corporate bond market.
Once introduced, the electronic route will shrink the timeline of the issue from application till the allotment of securities. Besides, it would also do away with the paper work associated with physical applications.
At present, it takes nearly 15 days for securities to be allotted to investors, after the issue closes for subscription. This is because the registrars to the issue have to verify each physical form, which is time consuming.
Introduction of electronic applications will bring this down to 2-3 days. “The bond market is taking off now…e-issuances will make it cost-effective for companies to raise capital and also enable them to raise funds faster,” said a person involved with the development.
The authorities are also hoping that the convenience associated with applying for debt issues could increase the popularity of the product with retail investors.
