NSE to launch debt segment on May 13

Leading bourse National Stock Exchange (NSE) will launch a separate debt trading platform on May 13 where it will list nearly 400 securities for retail and institutional investors.

In a circular, NSE said that a total of 22 securities would be available for retail dealings, while 376 securities would be admitted to dealings on the institutional platform.

The move would be effective from May 13, 2013.

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. There would be separate order books for retail and institutional investors.

Among the publicly issued securities that would be admitted to dealings on the retail segment include HDFC, LIC Housing Finance, Power Finance Corp, National Bank of Agriculture & Rural Development (NABARD), National Housing Bank and Power Grid Corp.

ICICI Bank, IDBI Bank, State Bank of India, Infrastructure Development Finance Company (IDFC), Muthoot Finance Limited, L&T Infrastructure Finance Company, Religare Finvest and Shriram City Union Finance, among others, would be available for trading in the institutional platform.

"The securities which are made available in the retail and Institutional platform on the debt segment shall continue to be available for trading in the capital market segment and wholesale debt segment respectively till further notice," NSE said.

Also, NSE will conduct a special mock trading session tomorrow in which members of the debt segment can participate.

The one-hour session would begin from 17:30 hours.

NSE, earlier this week, announced that it had received approval from market regulator Sebi to set up a separate debt trading platform.

The platform is expected to bring more transparency and credibility to the way debt securities are traded, besides attracting more investors to this segment.

The leading bourse has already held mock sessions for the separate debt trading segment to familiarise market participants. NSE will be the first exchange to offer a separate trading platform for debts.

The platform would also help in enabling all kinds of debt securities including corporate and wholesale debt under one roof.