Corporate bond market

SEBI has issued a consultation paper on 20th July, 2018 seeking to develop and deepen the corporate bond market. Pursuant to the implementation of IBC, time is ripe to develop the corporate bond market, which is at nascent stage in India due to various reasons. SEBI is proposed light touch regulation with compliance by top corporate borrowers in phases with a “comply or explain” approach in the initial stage. In the initial stage, it would be a nudge approach to the large corporate borrowers to go to the corporate bond market for 25% of their borrowing requirements, which later on could be a small monetary penalty of 0.2 to 0.3%.

The consultation paper is available at this link.

https://www.sebi.gov.in/reports/reports/jul-2018/consultation-paper-for-designing-a-framework-for-enhanced-market-borrowings-by-large-corporates_39641.html

 

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