SEBI may finalise norms for corporate bond trading soon
25 June 2007
New Delhi: SEBI, the capital market regulator, is close to enters ng new regulations on exchange-traded corporate bonds, which will provide a big boost for these bonds as far as secondary market trading is concerned.
According to official sources, the board of the Securities and Exchange Board of India (SEBI) is likely to consider this issue at its forthcoming meeting on June 30. Sources said that the regulator was at the penultimate stage, with the work on regulations almost complete.
The reports follow SEBI chairman, M Damodaran''s recent hints that trading platform on corporate debt would soon get operationalised at major enters like the stock exchange, Mumbai and the National Stock Exchange (NSE).
of now, the corporate debt market in the country is largely
an over-the-counter (OTC) market, with some large banks
and mutual funds being the main participants. The retail
segment is almost non-existent.