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NSE will operate a debt market segment soon.
Both retail and institutional investors would be allowed to trade publicly issued debt instruments. Only institutions would be allowed to trade non-publicly issued debt instruments.
The date of commencement and list of securities is yet to be communicated.
Gets SEBI’s nod
NSE said it has received SEBI’s approval to set up the segment and that it would be open for trading between 9 a.m. and 5 p.m.
The lot size for retail would be one while institutions would have a normal lot size equal to Rs 5 crore. Odd lot size for institutions would be Rs 1 crore.
Tick size (the minimum by which price can move) for retail investors would be one paise and quarter paise for institutions.
Interest would be calculated on the basis of actual/actual basis (actual number of days between two dates/ actual number of days in the period).
The price of the instruments would be on a clean price basis (price excluding interest component).
Quantity would be frozen at Rs 10 lakh for retail, Rs 25 crore for institutional trades (normal lot) and Rs five crore for odd lot institutional trades.
The base price for securities would be the previous close and the daily price range has been fixed at one per cent on either side of the base price.
raghavendrarao.k@thehindu.co.in
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