New Delhi : With an aim to develop corporate bond market in India, an expert panel on Thursday suggested easing of norms for foreign investors, a corporate bond index on lines of Sensex or Nifty, and making it mandatory for large corporates to tap this market for funds beyond a threshold.
The panel, comprising of nominees from Reserve Bank, Finance Ministry, markets watchdog Sebi as also insurance and pension regulators IRDAI and PFRDA, also wants tightening of norms for credit rating agencies by mandating them to strictly adhere to timely public disclosure of defaults. The ‘Report of the Working Group on Development of Corporate Bond Market in India’ has been submitted to RBI Governor Raghuram Rajan in his capacity as Chairman of the FSDC (Financial Stability and Development Council) Sub-Committee, which comprises of members from various regulators and had had set up the group.
The report was released on Thursday by Sebi, whose Chairman U K Sinha is a member of the FSDC Sub Committee. The Group was constituted in September 2015 under chairmanship of the then RBI Deputy Governor H R Khan and has now submitted its report after taking into account various structural issues impinging on the development of a deep corporate bond market in India.
