Mumbai: Leading bourse National Stock Exchange Monday launched the country's first dedicated debt trading platform here and said it is waiting for guidelines from market regulator Sebi for allowing participation of mutual funds, insurance companies and pension funds.
The debt trading platform is expected to provide an opportunity to retail investors to invest in corporate bonds on a liquid and transparent exchange platform.
Banks and primary dealers are first to enter and they will provide enough liquidity in the debt segment, Sebi Whole Time Member Rajeev Kumar Agarwal said after inaugurating the debt platform here.
The mutual funds, insurance companies and pension funds are also expected to participate after guidelines for the same are issued.
"We are awaiting for the guidelines from the market regulators for allowing mutual funds, insurance companies and pension funds to participate in the debt segment. Once the relevant guidelines are issued, all these categories will be able to trade directly as members," NSE Chief (Business Development) Ravi Varanasi told reporters.
NSE had recently received approval from Sebi to launch the debt segment.
"We have been actively engaging with many key institutions and are confident that they will be able to bring in liquidity to the platform, which will benefit the entire eco-system of issuers, institutions and retail investors," NSE MD and CEO Chitra Ramkrishna said.
"The institutional platform on the exchanges is an innovation, which has been launched after intensive feedback from market participants. It is very similar to RBI's NDS-OM, where government securities are traded on a transparent platform," Ramkrishna added.