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Friday, July 01, 2016

Electronic Bidding Platform for corporate debt takes off in India

Electronic Bidding Platform for corporate debt takes off in India
NSE records the first deal as LIC HFL raised Rs 435 cr

Mumbai: 

In another first, Electronic Bidding Platform (NSE-EBP) for corporate debt takes off in India through National Stock Exchange of India Limited’s (NSE) platform. LIC Housng Finance Limited – the first issuer on the platform - raised around Rs 435 cr through the newly launched platform by NSE.

The exchange launched NSE-EBP this morning to facilitate electronic bidding for issuance of debt securities on private placement basis. The bidding window was open for 30 minutes. The issue was managed by 7 arrangers including Axis Bank, HDFC Bank, ICICI Bank, IDFC Bank, SBI Capital Markets, Trust Investment Advisors and ISEC PD.

“This is a globally unique concept. The NSE-EBP platform is a milestone towards developing the private placements market for debt securities. We have received overwhelming response & more than expected number of bids.  LIC Housing Finance Limited opted for this despite that fact they were not mandatorily required ", said Mr. Mukesh Agarwal, Group head – MF & IPO, NSE and CEO- IISL & DotEx. 

This platform is an outcome of the budget announcement earlier this year and the subsequent guidelines released by SEBI on 21 April 2016. This initiative will help in the development of the corporate bond market and is aimed at enhancing transparency and efficiency in the price discovery in the debt private placement market. 

The NSE-EBP platform is designed with a user friendly web-based interface which makes the system accessible from any web-enabled device. The salient feature of this platform is the transparent price discovery mechanism. The system is also designed to facilitate a seamless listing in the privately placed securities on the Exchange which are placed through the platform. The Issuers, Arrangers, Sub-Arrangers, and Institutional Investors will be the entities allowed to access the platform. The Electronic book mechanism is mandatory for all private placements of debt securities in primary market with an issue size of INR 500 cr and above, inclusive of green shoe options, if any.


About The National Stock Exchange of India (NSE):

In its 20 years of existence, NSE has transformed the capital market, based on technology, innovation, high standards of corporate governance and management practices. NSE's business practices and high level of integrity have earned it the trust of the financial markets worldwide. Besides being a platform of choice for all exchange traded financial products in India, NSE's flagship index, Nifty50 is used extensively by investors in India and around the world as a barometer of the Indian capital markets. Since inception, the exchange has been covered extensively by global media and has won many accolades in recognition of its contribution in reforming the Indian securities market. For more information, please visit: www.nseindia.com

For more details, contact:

Arindam Saha | Head - Editor and Communications Head
asaha@nse.co.in , cc@nse.co.in  
Mobile: 09930019202 | 09903036100
Direct: 022 – 2659 8164
Twitter: @NSEIndia


Electronic Bidding Platform for corporate debt takes off in India Reviewed by S. Chitra on July 01, 2016 Rating: 5 Electronic Bidding Platform for corporate debt takes off in India NSE records the first deal as LIC HFL raised Rs 435 cr Mumbai:   ...

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