The Retail trading in G-Secs was launched today by the Honorable Minister of Finance. BSE today commenced trading in the Retail Debt Market with the initiation of the retail trading in G-Secs. The Central Government Securities will be made available as a new group of securities (G Group) in the online BOLT System of the Exchange.

As per the SEBI Circular SMD/Policy/GSEC/776/2003 dated January 10, 2003, only members with a Net Worth of Rs. 1 crore or more as per the Exchange specified formula will be permitted to undertake retail trades in G-secs through the Exchange mechanism.

The Governing Board of the Exchange, in it's meeting held on 13th January 2003, has also approved the creation of a separate Trade Guarantee Fund.

In order to stimulate retail trading in G-Secs and to encourage market participation, it has been decided that till March 31, 2003, there would be no transaction charges payable by the Members of the Exchange for the retail trades in G-Secs. The Exchange would however, recover only Rs.0.10 per Rs. 1 lakh of turnover, which would be credited to the Trade Guarantee Fund being set up for the retail trading in G-Secs.

The commencement of the Retail trading in G-Secs has met with an enthusiastic response from the Members of the Exchange.

The Exchange also offers an electronic trading, clearing and settlement platform for Corporate Debt Securities through the F Group of BSE which has been enabling the millions of investors in the Indian Markets to trade in Corporate Bonds for more than past 10 years.

The Exchange offers its Members the greatest added value through a unique benefit of access to three of the main segments of the Indian Financial Markets through a single membership right viz. Equities, Wholesale Debt Market Segment and Retail Debt Segment.

January 16, 2003