FSDC meets to iron out corporate debt market
- Lok Sabha elections: First phase of polling ends, Assam records 72 pc voting, Tripura 80 pc
- Modiâs mark on BJP manifesto
- Possible signals from lost jet's black boxes heard
- Revenge remark: EC issues notice to Amit Shah
- Elections 2014 LIVE: BJP talking of minority welfare is like Dracula heading blood bank, says Congress
The Financial Stability and Development Council (FSDC), a high-level panel of financial sector regulators headed by finance minister P Chidambaram, on Saturday discussed steps required to promote corporate bond market to help India Inc access long-term funds.
"The need for a roadmap for a structural shift towards a diverse financial system with an adequate emphasis on corporate bond instruments was discussed," an official release said.
The discussion focused on steps for rationalising the framework for regulation of corporate debt in order to remove regulatory constraints for issuers and protect investors as well as encourage participation of long-term investors.
The FSDC meeting also focused on steps to reduce cost of public issuance and increase liquidity through improving the market infrastructure. India's corporate bond market is estimated at 11.8 per cent of GDP, which is lower than the average for emerging East Asia at 17.2 per cent and for Japan at 19.8 per cent.
Arvind Mayaram, secretary, department of economic affairs on Thursday had also announced that the finance ministry will take steps to reform the corporate bond market to encourage fund flows to the infrastructure sector.
The Chidabaram-led panel also discussed the progress made by its sub-committee on three broad issues — assessing and addressing risks to financial stability, inter-regulatory coordination issues and issues related to financial inclusion and financial literacy.
The sub-committee, which is led by the Reserve Bank governor, is putting in place an effective mechanism for supervision of the financial conglomerates, a resolution regime for financial institutions and regulation of investment advisers.
- Ukraine says Russia fomenting eastern unrest
- Liquor worth Rs 4.85 cr seized in MP ahead of LS polls
- Man held with foreign currency worth Rs 38 lakh at airport
- Candidates steering towards auto unions to rev up support
- ‘Will send builders of illegal structures to jail’
- To root out corruption, vote for change and give the new face a chance, says Bains