BSE to introduce new corporate debt market platform next week

The Bombay Stock Exchange (BSE) will introduce a secured settlement platform for the Rs 1,500 crore Indian Corporate Debt Market (ICDM) next week.

The new initiative is aimed at mitigating the market risk of a buyer not receiving bonds after having remitted the funds or a seller not getting the payment for bonds.

Further, the BSE would soon launch a Corporate Bond Repo (CBR), another new product for the Indian market. "We hope to operationalise the ICDM platform on the exchange by next week," Sayee Srinivasan, BSE product strategy head, said.

"We are now in the process of signing up banks and other players in the system and testing our connectivity with their back offices, depositories, and Reserve Bank’s Real time gross settlement system(RTGS)," he said.

The exchange is participating in education seminars and roadshows across cities to inform market participants about the new settlement platform.

Srinivasan said the BSE was awaiting guidelines for the CBR. "After RBI provides the guideline, we will launch it in four weeks," he said.