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
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