We all know corporate bonds have a big role to play in development of Indian economy. Despite numerous reports (This one by RH Patil and Committee is the latest and the most popular) nothing seems to have happened.
But overall there is lot of confusion.
- BSE and NSE, the two premier stock exchanges both are to report corporate bond deals (OTC and on exchange).
- NSE has a trading platform (NSE was formed to develop corp bonds not equities!) and BSE has also floated a new platform as well.
- Still there is hardly any trade.
- Now SEBI has asked FIMMDA to develop a new trading platform.
Can anyone explain?
There is a recent press release from SEBI which shows the trading activity in both the exchanges. It includes both OTC and exchange deals. So one is not sure how much deals are already on the exchange.
To put things in perspective, let us look at NSE equity numbers.
- Both the number of trades and volume is just about a fraction.
- Number of trades in debt compared to equity on average for August 2007 is just 0.003%
- value of trades in debt compared to equity is 4.21%
Lots needs to be done. I would try and look at US numbers to draw a better perspective.