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National Stock Exchange (NSE) could be first off the block to launch separate debt segment for trading following a green signal from market regulator Securities and Exchange Board of India (Sebi) on Tuesday.
Meanwhile, its rivals---Bombay Stock Exchange (BSE) and MCX-SX -- too have submitted their applications and are waiting for Sebi's approval.
NSE has not yet announced the date of commencement of live trading in the debt segment.
Meanwhile, it has already conducted mock trading sessions to familiarise participants, which include banks, mutual fund houses and insurance companies.
MCX-SX and BSE, also too are in the state of preparedness and plan to launch the debt platform as soon as they receive the requite approvals, their spokespersons have said.
Earlier attempts to have debt trading on stock exchanges haven't proved to be successful.
In January, Sebi had issued new guidelines for providing dedicated debt segment on stock exchanges.
As wide category of investors are allowed to participate in the debt trading, market players are more hopeful that the latest attempt could prove to be more successful than before.
“The potential to develop the debt markets in India is immense. As this product is developed under joint coordination of RBI and SEBI along with inputs from other regulators and stakeholders, with all exchanges coming into the market to provide a thrust of competition, we are of the view that this segment will take off well this time,” said a MCX-SX spokesperson.
“Several issues affecting the organised trading in debt market have been taken care of the revised regulations. In view of the same, we expect the debt segment to attract additional volumes in future,” said a BSE spokesperson.
