Trading in corporate bonds at the nation’s top stock exchanges — BSE and NSE — picked up by 22.3 per cent to about Rs 83,612 crore in July over the preceding month, latest data by the Securities and Exchange Board of India showed.

Dealings worth Rs 68,381.37 crore in corporate bonds were reported in June.

Quantum of trading in July was the second highest for a month after Rs 93,946 crore in May in the current fiscal 2014-15. However, it was 24.45 per cent lower than Rs 1.10 lakh crore witnessed in the same month last year.

Including July, the total trading in corporate bonds has touched nearly 3.21 lakh crore this fiscal. In the same period last fiscal, the value of corporate bond transactions stood at over Rs 4.30 lakh crore.

During July, the National Stock Exchange (NSE) represented the largest share of trading in corporate bonds (about 80 per cent). Bonds trading worth Rs 66,854 crore were reported on NSE and Rs 16,757.8 crore on BSE.

Trading in BSE, FIMMDA

During April-July, NSE reported Rs 2.61 lakh crore trades in bonds, while BSE and Fixed Income Money Market and Derivatives Association of India (FIMMDA) reported a trading of over Rs 60,086 crore and Rs 31 lakh, respectively.

FIMMDA is an association of scheduled commercial banks, public financial institutions, primary dealers and insurance companies. The reporting platform at FIMMDA began on September 1, 2007 and allows entities to report their deals in bonds in one platform.

For July, FIMMDA did not report any trading in bonds.

Corporate bonds or debt securities are issued by private and public firms to raise money for various purposes like building a new plant, purchasing equipment or business growth.

When an entity buys a bond, one lends money to the firm that issued the security and in exchange the company promises to return the money on a specified maturity date.

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