Strengthening the Future of Corporate Bonds

Finally, it seems “Achchhe Din” are ahead for theIndian corporate bond market (CBM). The capital market regulator Securities and Exchange Board of India (Sebi) has decided to put in place a framework for operationalisation of the market that Finance Minister Arun Jaitley had hinted in his 2018-19 budget speech. Jaitley had stated that “Sebi  will also consider mandating, beginning with large corporates, to meet about one-fourth of their financing needs from the debt market.” India is an emerging market economy and has been facing a severe deficit in growth capital that is required for its all-round economic development, mostly for its infrastructure development. As per global infrastructure Outlook forecast published in the Economic Survey of 2017-18, around $4.5 trillion, (roughly Rs280.35 trillion) of infrastructure investment will be required by India...