TRADING IN CORPORATE BONDS : SEEKS SEPARATE PLATFORM FOR BANKS AND FIs

SEBI’s plan to create a uniform exchange for trading in corporate bonds is stuck with the Reserve Bank of India (RBI) seeking a separate platform for banks and Financial Institutions (FIs). An RBI committee is understood to have pointed out that banks and FIs will face settlement problems if they trade on the platform of the BSE, chosen by SEBI for on-line trading in corporate bonds. The committee has suggested a separate trading system for banks and FIs. Participation of brokers is to be tackled. RBI is not comfortable with the deals getting routed through brokers and instead prefers an order matching system for better transparency.