BSE to launch ‘BSE-Direct’ for retail investors in Non-Competitive Bidding of G-sec and T-bills

Written by Prakhar Narayan Sharma November 30, 2018 19:47

Mumbai: In its continuous efforts to encourage and increase participation of retail investors in government securities, BSE, India’s premier stock exchange and world’s fastest exchange with the speed of 6 microseconds, is launching ‘BSE-Direct’, an online bidding platform for retail investors in non- competitive bidding of Government securities (G-sec) and Treasury bills ( T-bills). Starting from December 03, 2018, the online platform will be available to the clients/investors at free of cost and will enable collection of bids directly from the investors.

Bombay Stock Exchange building

BSE is the premier exchange for investing in G-sec and T-bills in non-competitive bidding. Some of the salient features of ‘BSE-Direct’ are listed below:

• Security and funds will be directly credited to investors’ demat and bank accounts, respectively
• Quick, hassle free one-time registration for the investor
• State-of-the-art financial infrastructure of BSE, world’s fastest stock exchange
• User-friendly interface
• 24 x 7 bidding allowed on BSE Direct*

*Bidding for G-sec and T-bills will end on T-1 Day at 05:00 PM. T being the Auction date
Commenting on the newly-launched online platform, Shri Ashishkumar Chauhan, MD & CEO, BSE, said, “We decided to launch BSE-Direct to kindle widespread interest amongst retail investors. This platform will offer easy access to participants and will certainly act as an efficient mechanism for delivering government securities to retail clients. In the age of digital disruption, BSE wants to be at the forefront in harnessing technology and enhancing customer satisfaction too.”

BSE is the No.1 exchange for Retail trading in corporate bonds with a market share of 57% for FY 2017-18. BSE is also No.1 Exchange for listing of Corporate Bonds. For listing of public issues the market share of BSE for FY 2017-18 was 63% and market share in listing of privately placed corporate bonds was 54% for FY 2017-18. Government Security is a bond issued by Central Government of India with a promise of repayment upon maturity along with periodic coupon or interest payments. These securities are considered low-risk, since they are backed by the full faith and credit of the Government of India and default is unlikely. Government Security can be long term (Government Bonds or Dated Securities, maturity of one year or more) or short term (Treasury Bill, maturity of less than one year).

About BSE

BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg).

BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.

Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.

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