Mumbai: The Securities and Exchange Board of India's (SEBI) internal committee on unified exchange traded corporate bonds today suggested that the Bombay Stock Exchange (BSE) should initially set up a platform for trading in the absence of a common clearing and settlement infrastructure for such bonds.
Further, in the next two years, the responsibility should be shifted to an independent exchange, jointly constituted by both BSE and National Stock Exchange for trading, clearing and settlement of debt market instruments, the committee stated.
"The regulator will be comfortable to deal with one entity which deals exclusively with one segment of the market, say the corporate bonds in the instant case," it said.
SEBI would, thereafter issue a press release giving details of its plans for implementation of the task of development of a unified exchange traded market for corporate bonds.
Notably, BSE expressed its willingness to take the call as soon as they are offered the mandate and demonstrated their preparedness through a live presentation of a software package used for trade reporting before the committee.
In the three-phase development plan, the committee said that BSE should set up a mechanism for reporting of all the trades undertaken in the corporate bond market while SEBI will make it mandatory for all categories of traders including brokers to report details of each transaction within a specified time.
"BSE will take care to eliminate double reporting," it recommended.
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