New Delhi: The Sebi, will develop new products like options in the commodity derivatives market and also take a slew of measures to deepen the corporate bond markets.
“New derivative products will be developed by the Sebi (Securities and Exchange Board of India) in the commodity derivatives market,” Finance Minister Arun Jaitley said in Union Budget for 2016-17. he commodity market has been demanding for long the introduction of options contracts to deepen the market. However, a proposed increase in securities transaction tax for options may come as a dampener. Jaitley, however, said transaction in foreign currency for sale of commodity derivatives taking place on a recognised association established in international financial services centre will not be liable to commodity transaction tax, reports PTI. To facilitate deepening of corporate bond market, he said a number of measures will be undertaken including introduction of an electronic auction platform by Sebi for primary debt offer to develop an enabling ecosystem for the private placement market in corporate bonds.
A complete information repository for corporate bonds, covering both primary and secondary market segments will be developed jointly by Reserve Bank of India (RBI) and Sebi.