Stock market trading indian bond brokers perception

In order to encourage demand, investment norms for regulated entities may be reviewed to facilitate their active participation in corporate debt market. Restricting the proportion of borrowings by large corporates from banks and making such corporates use the market stock market trading indian bond brokers perception such as, corporate bonds, commercial papers and other instruments to meet a part of their short term as well as long term financing needs will help in the development of corporate bonds markets. The centrality of banks in the financial system is a given at our stage of economic development.

Development of bond markets needs sustained participation of long-term institutional investors across the credit curve. Nov 06, Corporate Bond Markets in India: One of the most significant steps in this direction was the setting up of the Bankruptcy Stock market trading indian bond brokers perception Reform Committee under Shri T. Measures taken to develop the corporate debt market 5. Early enactment of this proposed legislation and the follow-up action will be a game changer for development of corporate bond markets.

Banks are explicitly permitted to fund market making activities but at the end of day, it will be their call based on commercial judgement. Based on the experience, the guidelines may need to be reviewed. Infrastructure Efficient trading platforms for corporate bonds

Rated Municipal Securities As a regulator, our endeavor is to continually facilitate an enabling framework. Securitization of the corporate debt instruments would provide a big fillip to the market as it would improve risk transference and diversification and provide liquidity to the issuers. The focus of stock market trading indian bond brokers perception group will be to distill key actionable recommendations made by all earlier committees and suggest a time bound plan for implementation of the same. Stock exchanges could discuss with the market participants and make suitable changes in the existing platform to encourage trading.

They may also be permitted to use interest rate swaps, repos and credit default swaps. Corporate bond market may get a fillip as the interest rates come down and the fiscal deficit targets are achieved. The success of these measures in achieving the intended outcomes has, however, been varied. Speeches kb Date: