The Hindu : Business : BSE platform for corporate debt

Online edition of India's National Newspaper
Tuesday, May 16, 2006

Business

Business

BSE platform for corporate debt

Special Correspondent

Companies to report deals to exchange

CHENNAI: An internal committee appointed by the Securities and Exchange Board of India (SEBI) and headed by T. C. Nair, Wholetime Member, has proposed that the Bombay Stock Exchange (BSE) be entrusted with the task of setting up a "unified exchange traded corporate debt market'' (which has been defined as development of infrastructure to support a secondary debt market trading system that would allow efficient price discovery and reliable clearance and payment system as obtains in the case of government securities).

The committee has proposed that in the first phase, it should be made mandatory for all entities to report trades undertaken in the corporate debt market to the BSE within a specified time and format.

In the second phase, the BSE will create a trading platform and it will be made mandatory for corporate debt transactions in the secondary market to be undertaken only through this platform.

The internal committee has also outlined steps being taken in pursuance of a series of recommendations made by the High Level (Dr. R. H. Patil) Committee on corporate bonds and securitisation to deepen and broaden the corporate debt market.

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