SEBI to allow publicly-issued debt to trade in institutional market

Reuters
An employee poses with the bundles of rupees inside a bank in Agartala, the capital of Tripura August 22, 2013. REUTERS/Jayanta Dey/Files

MUMBAI (Reuters) - India will allow publicly-issued debt to be traded in the institutional market along with non-publicly issued debt, the stock market regulator said on Thursday, seeking to increase market liquidity. The Securities and Exchange Board of India (SEBI) Chairman U.K. Sinha had told reporters at the sidelines of an industry event on Tuesday that they would come up with measures to increase liquidity in debt trading within a couple of days. The SEBI circular said market participants can now trade publicly-issued debt for a minimum lot size of 100 million rupees while the exchange may separately provide for trading smaller lot sizes of a minimum 1 million rupees. (For details see the SEBI website: http://r.reuters.com/tav92v) (Reporting by Swati Bhat and Himank Sharma; Editing by Ruth Pitchford)