SDLs are dated securities issued by state governments via regular bidding course of much like the auctions carried out for such securities issued by the central authorities, the place curiosity is acquired semi-annually, and principal is repaid at maturity.
In an announcement, BSE has introduced the “introduction of non-competitive bidding facility in state growth loans. Retail buyers can now take part in these auctions via a straightforward on-line registration course of”.
The Reserve Financial institution of India (RBI) in its numerous measures to encourage retail participation has prolonged entry to major auctions to SDLs.
The RBI conducts auctions for such securities on a weekly foundation the place 10 per cent of the notified quantity is allotted for eligible buyers beneath the scheme for non-competitive bidding (NCB).
“We’re comfortable that from now onwards BSE can act as a facilitator for non-competitive bidding beneath RBI’s public sale to mixture the bids from retail buyers and submit a single bid to RBI. This facility will go a good distance in strengthening the capital markets,” BSE MD and CEO Ashishkumar Chauhan mentioned.
The trade’s non-competitive bidding facility will likely be along with the federal government securities and treasury payments that are presently being supplied via its platforms — BSE Direct App and bsedirect.com web site.
Final week, rival bourse Nationwide Inventory Trade (NSE) had launched the identical facility. SP BAL
source https://cvrnewsdirect.com/bse-to-offer-non-competitive-bidding-facility-in-state-development-loans-to-retail-investors/
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