BSE, NSE to start trading platform for corporate bonds from July: SEBI

New Delhi: SEBI says that the Bombay Stock Exchange and the National Stock Exchange expect to have trading platforms ready for trading in corporate bonds by July this year. This would help the growth of the fledgling bonds market.

The trading platforms would help in developing the corporate bond market fast by making them liquid so as to provide institutional investors another option for investment risk diversification.

While the trading platforms are likely to be operational by July, a reporting platform for providing quotes for corporate bonds at BSE has been functional since 12 January and at NSE from this month.

However, critics say that exchange-traded market for corporate bonds is no guarantee that this market would be developed in the country, since institutions with deep pockets are the major participants in the corporate bonds market.

Even in the United States, major corporate bonds are outside the exchange-traded platform, they said.

Creating an exchange-traded platform for corporate bonds is part of several recommendations by the high-level R H Patil Committee in 2005.