01 Feb 2018 13:18 IST

Sebi may allow large corporates to float bonds for 1/4th of fund needs: FM

The move is aimed at deepening the corporate bond market

Finance Minister Arun Jaitley today said market regulator 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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