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.
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.
