The Bombay Stock Exchange (BSE) has launched a new debt segment. In January 2013, India’s regulator, the Securities and Exchange Board of India (SEBI) gave its approval to India’s exchanges to set up this debt market.
In accordance with SEBI rules laid out in September 2013, specifying the risk management framework for debt, there will be settlement on T+1 basis.
There will be two types of market arrangements, for retail and institutional respectively. The retail market provides for all publicly issued, coupon-bearing corporate bonds listed on BSE . The exchange has enabled more than 175 bonds with an outstanding issue size of Rp 70,000 crores. (One crore is equal to ten million rupees).
The institutional market has a minimum market lot size of Rp. 1 crore (approximately US$166,000) and all publicly issued corporate bonds and privately placed coupon bearing bonds listed on the BSE are available.
More than one hundred trading and institutional members have registered for debt trading and the exchange says that the first trade was executed by IDBI bank Limited and Edelweiss Securities Ltd.