NSE announces launch of Tri-Party Repo on Corporate Debt Securities
Mumbai, June 12, 2018: National Stock Exchange of India Ltd (NSE), India’s leading stock exchange today announced the launch of its ‘Tri-Party Repo Market’ platform in its Debt Segment to facilitate repo on corporate debt securities. Tri-party repo is a type of repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. NSE will act as tri-party agent and offer an online web based, anonymous, order matching & multilateral trading platform to facilitate repo transactions. NSE would avail the services of National Securities Clearing Corporation Ltd (NSCCL), for performing collateral services viz. collateral valuation, margining, and settlement. Settlement of repo transactions shall be guaranteed by NSCCL. This eliminates counter party risk, and would results in higher and wider participation in the corporate bond market. To begin with, NSE will offer basket repo for tenor of 1 day to 7 days. The basket repos would facilitate borrowing and lending of funds against various baskets of corporate debt securities. The baskets will include corporate bonds, certificate of deposits and commercial papers. Participants will be able to provide securities forming part of the basket as collateral towards repo. The first few members who have participated on the platform are Axis Bank Ltd and ICICI Securities Primary Dealership Ltd. Speaking on the occasion, Mr. Vikram Limaye, MD & CEO, NSE said, “The corporate bond market in India needs improved liquidity as a holder of a corporate bond typically ends up holding the security to maturity. Repo on corporate debt provides opportunity to borrow against the securities and provides shortterm liquidity to participants. Availability of tri-party repo can increase demand for corporate bonds and may provide a boost to much needed liquidity in the corporate bond market.” The tri-party repo market platform is available to entities permitted by the Reserve Bank of India (RBI) and who are members of NSE’s Debt Segment. The RBI permitted entities include banks, primary dealers, NBFCs, All-India financial institutions, India Infrastructure Finance Company Limited, Mutual Funds, housing finance company and insurance company. The launch of tri-party repo market platform is an important milestone in development of the corporate debt market in India. About National Stock Exchange of India Limited (NSE): The National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the third largest in the world by nos. of trades in equity shares in 2017, according to World Federation of Exchanges (WFE) report. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide highquality data and services to market participants and clients. For more information, please visit: www.nseindia.com Disclaimer: National Stock Exchange of India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares and has filed a draft red herring prospectus dated December 28, 2016 (“DRHP”) with Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI as well as on website of the Managers, Citigroup Global Markets India Private Limited athttp://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, JM Financial Institutional Securities Limited at www.jmfl.com, Kotak Mahindra Capital Company Limited at http://www.investmentbank.kotak.com, Morgan Stanley India Company Private Limited at http://www.morganstanley.com/about-us/global-offices/india/, HDFC Bank Limited at www.hdfcbank.com, ICICI Securities Limited at www.icicisecurities.com, IDFC Bank Limited at www.idfcbank.com and IIFL Holdings Limited at www.iiflcap.com. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see “Risk Factors” beginning on page 19 of the DRHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.
For any clarifications
please contact: Debojyoti Chatterjee Head, Corporate Communication Mobile: +91 9833368337 Email id: cc@nse.co.in / dchatterjee@nse.co.in
Kumar Kartikey Senior Manager, Corporate Communication Mobile: 98195 49984 Email id: kumark@nse.co.in
Mumbai, June 12, 2018: National Stock Exchange of India Ltd (NSE), India’s leading stock exchange today announced the launch of its ‘Tri-Party Repo Market’ platform in its Debt Segment to facilitate repo on corporate debt securities. Tri-party repo is a type of repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. NSE will act as tri-party agent and offer an online web based, anonymous, order matching & multilateral trading platform to facilitate repo transactions. NSE would avail the services of National Securities Clearing Corporation Ltd (NSCCL), for performing collateral services viz. collateral valuation, margining, and settlement. Settlement of repo transactions shall be guaranteed by NSCCL. This eliminates counter party risk, and would results in higher and wider participation in the corporate bond market. To begin with, NSE will offer basket repo for tenor of 1 day to 7 days. The basket repos would facilitate borrowing and lending of funds against various baskets of corporate debt securities. The baskets will include corporate bonds, certificate of deposits and commercial papers. Participants will be able to provide securities forming part of the basket as collateral towards repo. The first few members who have participated on the platform are Axis Bank Ltd and ICICI Securities Primary Dealership Ltd. Speaking on the occasion, Mr. Vikram Limaye, MD & CEO, NSE said, “The corporate bond market in India needs improved liquidity as a holder of a corporate bond typically ends up holding the security to maturity. Repo on corporate debt provides opportunity to borrow against the securities and provides shortterm liquidity to participants. Availability of tri-party repo can increase demand for corporate bonds and may provide a boost to much needed liquidity in the corporate bond market.” The tri-party repo market platform is available to entities permitted by the Reserve Bank of India (RBI) and who are members of NSE’s Debt Segment. The RBI permitted entities include banks, primary dealers, NBFCs, All-India financial institutions, India Infrastructure Finance Company Limited, Mutual Funds, housing finance company and insurance company. The launch of tri-party repo market platform is an important milestone in development of the corporate debt market in India. About National Stock Exchange of India Limited (NSE): The National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the third largest in the world by nos. of trades in equity shares in 2017, according to World Federation of Exchanges (WFE) report. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide highquality data and services to market participants and clients. For more information, please visit: www.nseindia.com Disclaimer: National Stock Exchange of India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares and has filed a draft red herring prospectus dated December 28, 2016 (“DRHP”) with Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI as well as on website of the Managers, Citigroup Global Markets India Private Limited athttp://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, JM Financial Institutional Securities Limited at www.jmfl.com, Kotak Mahindra Capital Company Limited at http://www.investmentbank.kotak.com, Morgan Stanley India Company Private Limited at http://www.morganstanley.com/about-us/global-offices/india/, HDFC Bank Limited at www.hdfcbank.com, ICICI Securities Limited at www.icicisecurities.com, IDFC Bank Limited at www.idfcbank.com and IIFL Holdings Limited at www.iiflcap.com. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see “Risk Factors” beginning on page 19 of the DRHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.
For any clarifications
please contact: Debojyoti Chatterjee Head, Corporate Communication Mobile: +91 9833368337 Email id: cc@nse.co.in / dchatterjee@nse.co.in
Kumar Kartikey Senior Manager, Corporate Communication Mobile: 98195 49984 Email id: kumark@nse.co.in
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