Corporate bond trading jumps 43 per cent to Rs 8.9 lakh cr in H1 FY18

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Mumbai | Published: October 18, 2017 5:46:26 PM

Continuing with its upward movement, trading in corporate debt securities at top stock exchanges BSE and NSE surged nearly 43 per cent to a record Rs 8.9 lakh crore in the first half of the current fiscal.

corporate bonds, corporate bonds trading, bond trading, nse data on corporate bond tradingTrading worth Rs 6.22 lakh crore in corporate bonds were reported on the two bourses during April-September period 2016-17, data compiled by capital market regulator Sebi shows. (Reuters)

Continuing with its upward movement, trading in corporate debt securities at top stock exchanges BSE and NSE surged nearly 43 per cent to a record Rs 8.9 lakh crore in the first half of the current fiscal. Trading worth Rs 6.22 lakh crore in corporate bonds were reported on the two bourses during April-September period 2016-17, data compiled by capital market regulator Sebi shows. During the first six months of 2017-18, the National Stock Exchange (NSE) represented the largest share of trading in corporate debt securities at little over 76 per cent. Bonds worth Rs 6.80 lakh crore were traded on the exchange compared to Rs 5.10 lakh crore during the period under review. The remainder of the bonds worth Rs 2.10 lakh crore were traded on the BSE — a pick up of over 87 per cent compared to the same period year-ago. Month-wise, September saw trades worth Rs 1.51 lakh crore, 6 per cent from the preceding month. The trading value in September is 5.5 per cent from the same month in 2016.

So far till September, June has recorded the highest volume of trading in corporate debt securities at Rs 1.69 lakh crore followed by July (Rs 1.61 lakh crore). May saw the lowest volumes at Rs 1.26 lakh crore. Corporate bonds are increasingly becoming a preferred route for companies to raise funds for various business purposes like building a new plant or purchasing equipment

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 with interest on a specified maturity date.

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