Companies in India have raised about Rs 26,000 crore from the issuance of bonds on the NSE’s newly launched electronic book mechanism platform.
The platform NSE-EBP (Electronic Debt Bidding Platform) was launched on July 1, to facilitate online bidding for private placement of debt securities.
The rival exchange BSE had also launched the platform — BSE-BOND — on the same day.
Since then, companies have raised 25,785 crore through 33 issuances on the NSE’s platform.
Five issuers have completed bond issuances above Rs 2,500 crore each on NSE-EBP. Issuers like HDFC, LIC Housing Finance, Tata Power, Indiabulls Housing Finance and Power Grid Corporation of India are using the platform.
National Stock Exchange (NSE) has emerged as the preferred exchange with 33 issues worth Rs 25,785 crore till August 23, 2016.
The e-book platform is expected to bring in transparency and efficiency in price discovery for private placement of debt securities.
The electronic book mechanism is mandatory for all private placements of debt securities in primary market with an issue size of Rs 500 crore and above, inclusive of green shoe options, if any.