The retail debt window was to have been opened to members from September this year. Most of the software has already been developed. "The RDM version has now been frozen as the exchange has placed higher priority on tackling the Y2K problem. Once all Y2K related work would have been completed, which is expected to be done so by January next year, we would look at getting back to develop the retail debt segment. Until then the project is on the backburner", said a senior NSE official.

The retail debt segment was aimed at creating a platform for investors to trade in small lots of corporate debt instruments. The exchange currently has a wholesale debt segment (WDM) but that is dominated by the "big boys" and the deals which take place there arehuge making it possible only for institutions and banks to participate.

With the government, too, realising that there is a need to create a vibrant secondary debt market, it was felt that more and more investors need to be brought into the ambit of trading in corporate debt instruments.

NSE had proposed to put in place a separate screen altogether for retail debt. Members were to have been given membership to the segment at no additional cost whatsoever.

Importantly, all trades were to be routed through the clearing house of the bourse unlike in the WDM segment. This would have given a comfort element to investors as the NSE clearing house provides for counter party guarantee.

"The idea was to give a complete focus to corporate debt. There are a large number of debt instruments which have lost their focus on the WDM segment as bulk of the trades on that segment are in government securities. We will try and put in place this segment as soon the Y2K problem has been sorted out", the NSE officialsaid.

The problem for NSE is that it has to ensure that not only are its own systems Y2K compliant but also ensure that the systems at the end of its 1,000-member brokers are equally compliant or else the entire purpose of the exercise would be defeated.

The exercise has already been kicked-off. The market regulator, SEBI, too has written to all stock exchanges asking them to ensure that all systems are Y2K compliant. Most of the exchanges are automated and the regulator is keen to ensure that there are no systems failures on January 1, 2000.