May 17 2011
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Qatari bourse to list sovereign bonds
"These will be followed, in due course, with the listing of corporate bonds as well," Qatar Exchange has said on its website.
No restrictions will be put on bond trading transactions carried out by foreign investors.
The proposed move is part of the bourse's continuous service expansion to support the investor community, said the exchange.
The aim of a bond issuer is to raise capital, while investors profit through periodic income as well as capital gain.
Unlike equities, bonds carry low risk and bond-holders being lenders (not shareholders as in the case of stocks) are given priority in case of bankruptcy proceedings against an issuer.
The tick size for bonds will be 0.01 percent regardless of the price, and the fee for bond trading are to be charged by the brokers for each trade, whether buy or sell, the QE said.
Daily trading reports will be produced at the end of each daily trading session, and will include a specific section for bond trading activity and prices.
The bourse, however, did not specify the lots in which small investors would be allowed to buy or sell the bonds once they are listed.
© The Peninsula 2011
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