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The BSE's new initiative is aimed at mitigating the market risk of a buyer not receiving bonds after having remitted the funds or a seller not getting the payment for bonds
The Bombay Stock Exchange (BSE) will introduce a secured settlement platform for the Rs1,500 crore Indian corporate debt market (ICDM) next week, reports PTI.
The new initiative is aimed at mitigating the market risk of a buyer not receiving bonds after having remitted the funds or a seller not getting the payment for bonds.
Further, the BSE would soon launch a corporate bond repo (CBR), another new product for the Indian market. "We hope to operationalise the ICDM platform on the exchange by next week," said Sayee Srinivasan, BSE product strategy head.
"We are now in the process of signing up banks and other players in the system and testing our connectivity with their back offices, depositories, and Reserve Bank of India’s Real Time Gross Settlement System (RTGS)," he said.
The exchange is participating in education seminars and road shows across cities to inform market participants about the new settlement platform.
Mr Srinivasan said that the BSE was awaiting guidelines for the CBR. "After RBI provides the guidelines, we will launch it in four weeks," he said.