Corporate bond trading jumps to Rs 12.9 L cr in 2016

Trading in corporate debt at nation’s stock exchanges –BSE and NSE –surged nearly 23 per cent to Rs 12.9 lakh crore, during the last year. 

Trading worth Rs 10.50 lakh crore in corporate bonds were reported on the two bourses during 2015, latest data available with the Securities and Exchange Board of India (Sebi) showed. During 2016, the National Stock Exchange (NSE) represented the largest share of trading in corporate bonds (about 82 per cent). Bonds worth Rs 10.52 lakh crore were traded on the exchange in the period. 

NSE had witnessed trades amounting to Rs 8.36 lakh crore in 2015. Trades in bonds amounting to Rs 2.38 lakh crore were seen on the BSE during 2016 compared to Rs 2.14 lakh crore in the preceding year. No trades were reported under FIMMDA, an association of scheduled commercial banks, public financial institutions, primary dealers and insurance companies, for the time-period. 

Month-wise, the corporate debt trading slowed down after March 2016 when it dropped below the Rs 1 lakh crore mark in April. However, it regained the level post the month of June. September 2016 recorded the highest value in terms of trading in corporate debt at Rs 1.43 lakh crore. This was followed by trading worth Rs 1.40 lakh crore in December. 

Lowest trading was reported in April (Rs 81,520.85 crore) and February (Rs 82,142.24 crore). Corporate bonds or debt securities are issued by private and public firms to raise money for various purposes like building a new plant, purchasing equipment or business growth.