Bond – is a registered, uncertificated investment security in which a bondholder loans money to an issuer and depending on conditions receives either interest (coupon) or discount or principal amount at defined period of time.
Depending on the type of issue, earnings from bonds are paid to investors either in the form of interest (coupon), discount or mixed form (both interest and discount). As a rule, short term bonds are usually issued at a discount, medium and long term bonds are issued at interest rate.
According to the law, bonds are issued in the form of uncertificated and registered securities only.
Bonds can be guaranteed or non-guaranteed.
Guaranteed bonds – obligations are guaranteed with collateral, guarantee, as well as the government or municipality guarantee.
BSE facilitates bond allotment and secondary market operations. In order to trade bonds have to be listed.
Allotment of bonds (public offering) is carried out through a stock exchange. A prospectus shall be prepared for public offering of securities. SCS sets requirements for drafting of a prospectus.
Secondary market is organized for allotted bonds that are already in turnover.
Acquisition of securities on BSE and participation in BSE facilitated market is undertaken through stock exchange members. For this you need to contact any stock exchange member.
Visit the following links or contact us to learn more about corporate bond trading on BSU.