You may soon get to buy corp bonds online (2) March 16, 2009
Posted by dhirendra1972 in Large Scale Globally, New Agreement, Physical Application, Taking Off Bond Market.Tags: International Market, Investos, Public-debt, Retail Investors, Scale Globally, Security Allotment, Time Consumption, Timeline, trading
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“Introduction of this will take us much ahead of international markets. E-issuances are yet to be introduced on a large scale globally. Once it is implemented, India will be among the few countries to leverage this technology,” says TC Nair, former whole-time member of Sebi.
According to officials familiar with the development, guidelines for e-issuances will be discussed at the next Corporate Bonds and Securitisation Advisory (CBSA) committee meeting. The regulator may also extend the use of application supported by blocked amount (ASBA) in debt public offers.
However, it is unclear whether e-issuances will be exempted from stamp duty.
Trading activity in the corporate bond market has picked up of late, with much of it being in bonds of state-owned companies. However, most of the transactions are through private placements.
According to Sebi data, close to 382,563 trades worth Rs 131,756 crore have taken place in corporate bonds between April 2008 and February 2009.
In a bid to simplify the continuous disclosure requirement, Sebi is likely to come out with the new listing agreement for debt securities soon.
The new listing agreement for debt securities, prepared in consultation with both stock exchanges — BSE and NSE — will be one single document replacing the existing separate listing agreements for debentures issued by way of a public issue and those that are privately placed.
