Financial Technologies, which is also the promoter of commodities derivatives exchange MCX, has submitted the proposal to the Securities and Exchange Board of India,plans to set up an exchange for illiquid corporate bonds.The company recently got the government approval to set up an energy exchange
The move is a part of Financial Technologies strategy to take advantage of opportunities in the business of running exchanges. The company also has plans to start an exchange for trading in shares of small and medium enterprises.
The company, which also holds 49 per cent stake in the Dubai Gold and Commodities Exchange, recently received the go-ahead from the CentralElectricity Regulatory Commission to set up Indian Energy Exchange. The proposal submitted by Financial Technologies envisages a demutualised exchange, wherein strategic and financial investors would hold equity stakes. An official spokesperson of Financial Technologies declined to comment.
According to the Securities and Exchange Board of India (Sebi) data, trading in corporate bonds, including over the counter trades and trading through exchanges, stood at Rs 53,664.26 crore between January and August.
In this month (till September 20), the trading stood at Rs 532.66 crore. Market sources said in the absence of primary market reforms, actual trading in bonds would not take place and even a separate corporate bond exchange is set up, it would only diversify the present trading.
Read more in The Business Standard article.
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