Bond trading gains traction; logs over Rs 83,000 cr turnover in July

Tags: Stock Market
Trading in corporate bonds at the nation's top stock exchanges -- BSE and NSE -- picked up by 22.3% at about Rs 83,612 crore in July over the preceding month, latest data by market regulator Sebi showed.

Dealings worth a total of Rs 68,381.37 crore in corporate bonds was reported on the two bourses during June.

The Rs 83,611.81 crore trading in July was the second highest for a month after Rs 93,946 crore in May in the current fiscal 2014-15.

However, the value in July 2014 was 24.45% lower than Rs 1.10 lakh crore witnessed in the same month last year.

Including July, the total trading in corporate bonds has touched nearly 3.21 lakh crore in this fiscal. In the same period last fiscal, the value of corporate bond transactions stood at over Rs 4.30 lakh crore.

During July this year, National Stock Exchange (NSE) represented the largest share of trading in corporate bonds (about 80%). Bond trading worth Rs 66,854 crore were reported on NSE this month.

Trades in bonds amounting to Rs 16,757.8 crore were seen on the BSE last month.

For April-July period, NSE reported Rs 2.61 lakh crore trades in bonds, while BSE and Fixed Income Money Market and Derivatives Association of India (FIMMDA) reported a trading of over Rs 60,086 crore and Rs 31 lakh, respectively.

FIMMDA is an association of scheduled commercial banks, public financial institutions, primary dealers and insurance companies. The reporting platform at FIMMDA began on September 1, 2007 and allows entities to report their deals in bonds in one platform.

For July, FIMMDA did not report any trading in bonds.

Corporate bonds or debt securities are issued by private and public firms to raise money for a various purposes like building a new plant, purchasing equipment or business growth.

When an entity buys a bond, one lends money to the firm that issued the security and in exchange the company promises to return the money on a specified maturity date.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amidst Sino-Indian bonhomie, the Tibet issue cannot be wished away

    Tibet did not figure in the three-day high-level meetings between India and the People’s Republic of China (PRC).

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture