NSE begins mock session for dedicated debt trading platform

Gearing up for the start of its dedicated debt trading platform, leading bourse National Stock Exchange (NSE) today began mock sessions for the segment to familiarise market participants about the system and operational details.

In a circular, the exchange said it is in the process of setting up and operating debt segment. In order to familiarise the members on the debt segment, a mock trading session has started from today onwards.

The one-hour session has started on the NSE after closure of trading hours at 1730 hours.

In the separate debt segment, banks, insurance companies, pension funds, provident funds and retail investors can become trading members of the bourse and trade in this market.

The move is part of overall efforts to develop the country's corporate debt market, which is at a nascent stage. Generally, debt securities are debentures, bonds, deposits, notes or commercial paper.

The decision to have separate debt segment on the bourses was taken at market regulator Sebi's board meeting in January and later Sebi issued elaborate guidelines on the same.

According to Sebi's regulations, the debt segment would provide separate trading, reporting, membership, clearing and settlement rules. In the proposed debt segment, trading would be from 0900 hours to 1700 hours.

The debt segment has to list all the securities and debt instruments and has offer electronic, screen-based trading system.

As per Sebi, the trading facility for the bond market can make use of access methods such as internet and mobile trading. Further, the segment should have separate trading platforms for retail as well as institutional players.