BOMBAY STOCK EXCHANGE TIES UP WITH REUTERS FOR REPORTING OF DEALS IN INDIAN CORPORATE DEBT MARKET

Bombay Stock Exchange Limited (BSE) has teamed up with Reuters India Private Limited to provide its Reuters Messaging (RM) facility for accepting all reported deals done in the corporate debt market in India.

Finance Minister Mr. P. Chidambaram, in his 2006 budget speech had announced the intention of the Government to create a single, unified exchange-traded market for corporate bonds in India. Subsequently, the Securities and Exchange Board of India (SEBI) vide its circular dated December 12, 2006, entrusted the responsibility of setting up this single reporting platform for all corporate debt transactions executed in the country to the Bombay Stock Exchange Limited (BSE).

BSE has developed a reporting platform - Indian Corporate Debt Market (ICDM), for reporting of all corporate deals done in respect of debt that is listed on any stock exchange in the country, is in demat form and over Rs. 1 lakh in value as prescribed by SEBI. This system has been installed free of cost for all entities who have a ready connectivity with the BSE through its BOLT platform.

Guided by the need to provide unrestricted and open access to the reporting platform with no cost implications for the reporting entities, especially those other than its own trading members, BSE has, in addition to making the platform (ICDM) accessible to its own trading members through its wide network of Ethernet connections, leased lines and VSATs in over 420 cities and towns of India, rolled out an Internet based system for reporting the deals. The user friendly Internet Portal called ICDM is presently being used by over 70 participants in the Debt market.

Additionally, to make the framework inclusive, BSE has tied up with Reuters for its Reuters Messaging System. The Reuters Messaging system will accept the reported trades from its subscribers and forward the same to the BSE’s Indian Corporate Debt Market platform (ICDM), where the trades would be aggregated and disseminated through ICDM reporting platform as well as the following link on its website "http://www.bseindia.com/ICDM/Tradereport.asp"

Mr. Rajnikant Patel, Managing Director & CEO of Bombay Stock Exchange said, “ I am positive that this unique path breaking move will lead to a much more vibrant and transparent debt market in India. BSE remains committed to this developmental move by SEBI and will try to ensure high reporting levels in the Corporate Bond Market.”

Samir Shah, Managing Director South Asia, Reuters India Private Ltd: said’ “'One of Reuters key focus in India would be to assist development of the corporate debt market. The corporate debt market is a key infrastructure to sustain the growth demands of the economy. Reuters has very good penetration amongst fixed income dealers and has very efficient tools that help collaboration and reporting between market participants. We are excited about being able to offer our Reuters Messaging capability to the market to facilitate best-in-class collaboration between market participants and BSE towards making the corporate debt market more efficient.'

Reuters Messaging offers powerful instant messaging and chat rooms to the financial markets. With streamlined access to the financial community, Reuters Messaging helps build superior teamwork across organizations and improve communication with clients. Reuters Messaging provides BSE access to over 200 million reachable contacts worldwide.

This service which offers access to the BSE’s Indian Corporate Debt Market (ICDM) will be available to Reuters users free of cost and will help BSE reach out to a large number of participants including its non members.

It may be noted that as per the SEBI directives, all intermediaries / contracting parties are obliged to report all transactions executed by them in corporate debt, from January 1, 2007, within 30 minutes of closing the deal.

Source : Equity Bulls

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