The Bombay Stock Exchange has received an approval from the market watchdog Securities Exchange Board of India (Sebi) to launch its debt platform
under the new regulations.
The regulator's approval allows the exchange to launch a debt platform where banks, primary dealers, insurance companies, provident funds and pension funds can be trading members. This window for trading in debt instruments opens up a new avenue for retail investors to buy debt.
The debt trading platform at BSE will provide retail investors with an opportunity to invest in corporate bonds on a liquid and transparent exchange platform. It will further provide an opportunity to institutions to buy and sell at optimum prices and help corporates to get adequate demand, while issuing bonds.
Corporate bonds are an attractive investment to retail investors as they provide stable returns.
At present, the BSE has a trading platform for the retail and institutional players. The exchange has more than 65 per cent market share in retail debt segment.