Bse Set To Start On-Line Debt Trading Today

According to BSE president M G Damani, the settlement period for debt market trading will be on a weekly basis between Thursday and Wednesday. The settlement (both pay-in and pay-out) for this segment will take place on the immediately following Friday and will be done through the clearing house. All settlement procedures will be similar to the existing procedures for A+B1 group.

Arbitration will be done on Saturday and auction would take place on the first Tuesday following the date of pay-out. However, the first settlement will be for a three-day period starting today (Monday) and ending on Wednesday.

All debentures listed on the BSE would be traded under the new group F with a new code number allotted to each of them. All future listing of debentures would be given a separate code number under this group and this segment will only list non-convertible debentures.

The exchange is specifically doing this in a bid to revive trading in debt instruments and create a retail bond market, BSE sources said.

It may be recalled that a high powered exchange committee, constituted under its vice-president, J C Parekh, to work out the modalities of the segment, had held several meetings to lay down the business requirement standard for debt market trading.