Bond trading dips 32.3% in capital markets in April

Deals worth Rs 75,040 cr reported in April 2014, compared with Rs 1.1 lakh cr a year ago

Trading in corporate bonds at the country's capital markets plunged 32.3 per cent at Rs 75,040 crore in the first month of the current fiscal over the same period year-ago, latest data by market watchdog Sebi showed.

Dealings in corporate bonds worth Rs 1.1 lakh crore were reported by the NSE, BSE and Fixed Income Money Market and Derivatives Association of India (FIMMDA) for April 2013.

However, the trading in bonds for the month of April, this year, was the second highest-level recorded since 2007-08 after Rs 1.1 lakh crore in the same month, last year.

Individually, National Stock Exchange (NSE) represented the largest share of trading in corporate bonds (80.15 per cent), during April. Bonds worth nearly Rs 60,149 crore were traded on the bourse in the month.

Trades in bonds on the BSE stood at Rs 14,891 crore, while FIMMDA reported corporate bond trading to the tune of only Rs 11 lakh.

Trade reporting on FIMMDA began on September 1, 2007. The reporting platform at the association allows entities to report their deals in bonds in one platform.

Corporate bonds or debt securities are issued by private and public firms to raise money for various purposes like building a new plant, purchasing equipment or business growth.