The National Stock Exchange inaugurated the debt segment on Monday for retail and institutional players.

Now, retail investors who are unable to trade in the over-the-counter market can trade on the debt segment, where prices will be determined through market dynamics by anonymous order matching, just like they are determined for shares.

According to SEBI, the regulator is looking for an amendment in the Securities Contracts Regulation Rules (SCRR) to open up the platform to insurance and pension fund players.

A senior SEBI official said: “Both the PFRDA and IRDA have submitted their concurrence on this. Now the Government has to take a call on when the amendment will be implemented paving the way for these players to directly participate as members.” SEBI is also looking at implementing the so-called delivery versus payment (DVP) 3 settlement type for institutional investors, where trades are settled on net basis and intra-day trading is allowed.

The market regulator in consultation with the exchanges has to decide on the margin requirement for DVP 3 settlement.

“We want to ensure that the margins are appropriate enough and not too large to work as a disincentive,” added a SEBI official.

MD and CEO of NSE Chitra Ramkrishna said: “We have been actively engaging with many key institutions and are confident that they will be able to bring in liquidity to the platform, which will benefit the entire eco system of issuers, institutions and retail investors.”

m anisha.jha@thehindu.co.in

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