BSE to launch trading in govt bonds in demat form

We are in the process of launching govt bonds on depository dematerialised mode, BSE MD and CEO

To make it easier for individual investors to invest in government bonds, stock exchange BSE will soon start offering trading in such securities in dematerialised mode.

"We are in the process of launching government bonds on depository dematerialised (demat) mode," BSE managing director and CEO Ashishkumar Chauhan told PTI.

"Today it is very difficult for an individual to invest in government bonds. But once it comes easily in demat, then an individual investor can also invest in government bonds," Chauhan added.

Last month, BSE had introduced an 'overnight liquid fund' product on its mutual fund platform, BSE STAR MF.

The risk-free product enables smallest investors, corporate or a trust to invest even for a period of a single night, in liquid funds anywhere in India.

"Stocks and derivatives are basically risky instruments. Today, we (BSE) are thinking of risk-free instruments," Chauhan said on the sidelines of the Skoch Summit.

Talking about the liquid fund, Chauhan said the product is seeing daily transactions worth Rs 400-500 crore and is expected to generate a big response from the households in the near-term.

To increase participation of the retail and mid-segment investors in the government securities market, RBI had earlier extended web-based access to secondary market trading platform and primary market platform for the gilt account holders.

The banking sector regulator has also proposed to introduce a similar web-based solution for participation of all mid-segment/retail investors having gilt accounts. The facility is expected to be made available in a few months.

Considering the need to tap private savings through G-secs, RBI had also said that retail investors could be provided direct access to both primary and secondary market platforms without any intermediary.