BackBudget 2018: Sebi for corporate bond market to fund companies, says Arun Jaitley
In his budget speech, Arun Jaitley says Sebi may consider mandating large corporates to use bond market to finance one-fourth of their funding needs
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New Delhi: Finance Minister Arun Jaitley on Thursday said market regulator Securities and Exchange Board of India (Sebi) may consider mandating large corporates to use bond market to finance one-fourth of their funding needs.
The move is aimed at deepening the corporate bond market and encourage companies to tap this route for funds. Presenting the Union Budget 2018-19, Jaitley also said that some PSUs’ assets will be monetised through the infrastructure investment trust (InvIT) route.
Sebi has been taking a slew of measures to deepen the bond market. These include allowing foreign portfolio investors (FPIs) to invest in unlisted corporate debt securities as well as putting in place a new framework for consolidation in debt securities.
In its annual report, Sebi had said: “Developing a liquid and vibrant corporate bond market further is an important agenda for enhancing the role of the Indian securities market in channelising long-term finance. Sebi will work with all stakeholders for this."
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