Corporate debt market holds large potential
The Indian corporate debt market is expected to raise $400 billion over the next 2-3 years and would be ready to move from OTC to Exchange-traded Market, a top SEBI official said here on Wednesday.
By PTI |
MUMBAI: The Indian corporate debt market is expected to raise $400 billion over the next 2-3 years and would be ready to move from OTC to Exchange-traded Market, a top SEBI official said here on Wednesday.
"There is a definite need to develop the debt market in India and the time has come to shift from OTC (over the counter) trading to exchange trading.
The advent of reporting and trading platforms, TDS exemption on corpoarte bond transactions and availability of derivatives in the corporate debt market are clear signs from the regulators to take the debt market from OTC to Exchange-traded market," Securities and Exchange Board of India (SEBI), whole-time Member, T C Nair said, while addressing a seminar here.
Commenting on the trading volumes in the Corporate Debt Market, Nair said, "The Indian corporate debt market has grown from Rs 2,000 crore in FY2006 to Rs 120,000 crore in FY2007 with private placements being higher than public issuances.
Manoj Vaish, CEO & President India, Dun & Bradstreet in his inaugural address said, "Going forward, having done well in the equity and derivatives markets there is no reason why India cannot do well in debt markets as well."
"The FIIs should be allowed to invest in a big way to develop the corporate debt market in the country. The quantitative limit of FIIs investment is $3.2 billion in gilts and $1.5 billion in non-gilts," Clearing Corporation of India, Vice-President, Golak C Nath said.
SEBI recently hiked the investment limits for FIIs in the government securities market to $3.2 billion from the $2.6 billion. FIIs exposure in corporate debt market is meager at one per cent only.
"There is a definite need to develop the debt market in India and the time has come to shift from OTC (over the counter) trading to exchange trading.
The advent of reporting and trading platforms, TDS exemption on corpoarte bond transactions and availability of derivatives in the corporate debt market are clear signs from the regulators to take the debt market from OTC to Exchange-traded market," Securities and Exchange Board of India (SEBI), whole-time Member, T C Nair said, while addressing a seminar here.
Commenting on the trading volumes in the Corporate Debt Market, Nair said, "The Indian corporate debt market has grown from Rs 2,000 crore in FY2006 to Rs 120,000 crore in FY2007 with private placements being higher than public issuances.
Manoj Vaish, CEO & President India, Dun & Bradstreet in his inaugural address said, "Going forward, having done well in the equity and derivatives markets there is no reason why India cannot do well in debt markets as well."
"The FIIs should be allowed to invest in a big way to develop the corporate debt market in the country. The quantitative limit of FIIs investment is $3.2 billion in gilts and $1.5 billion in non-gilts," Clearing Corporation of India, Vice-President, Golak C Nath said.
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SEBI recently hiked the investment limits for FIIs in the government securities market to $3.2 billion from the $2.6 billion. FIIs exposure in corporate debt market is meager at one per cent only.
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