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Premier stock exchange BSE Ltd today launched BSE New Debt Segment (BSE NDS).
The exchange has more than 100 trading members and institutional members registered on BSE NDS. The first trade on this segment at BSE was executed by IDBI Bank Ltd and Edelweiss Securities Ltd, BSE said in a statement here.
In accordance with SEBI circular dated September 2013 specifying risk management framework for dedicated debt segment, BSE NDS provides settlement on T+1 basis in this segment with two type of market namely retail market and institutional market.
Finance Minister P Chidambaram, in his 2013 budget speech had announced the intention of the government to create a dedicated debt segment on stock exchanges. Subsequently, the Sebi entrusted the responsibility of setting up this dedicated debt segment to all exchanges.
The retail market provides all publicly issued coupon bearing corporate bonds listed on BSE and which will be settled on T+1 basis with settlement guarantee. The exchange has enabled more than 175 bonds with outstanding issue size of Rs 70,000 crore.
The institutional market has minimum market lot of Rs 1 crore and all publicly issued corporate bonds and privately placed coupon bearing bonds listed on BSE are enabled on it.
