Thu, Jun 29, 2017 | updated 11:14 AM IST

ASSOCHAM-Crisil study suggests three pronged strategy to deepen bond market in India

Updated: Mar 20, 2017 17:38 IST      
ASSOCHAM-Crisil study suggests three pronged strategy to deepen bond market in India

New Delhi [India], Mar 20 (ANI): A three pronged approach based on facilitating larger institutional investment in corporate bonds together with weaning companies away from bank loans and ensuring facilitative policies and infrastructure from perspective of both issuers and investors is imperative for comprehensive development of debt market in India, suggested a recent ASSOCHAM-Crisil joint study.

"Setting up of a dedicated team of experts or department within the Ministry of Finance to facilitate development of the corporate bond market and following up on relevant implementation initiatives will help," suggested the study titled, 'Giving debt its due,' jointly conducted by ASSOCHAM and Crisil thereby highlighting the need to put in facilitative policies and requisite infrastructure.

As part of facilitating larger institutional investment in corporate bonds - mutual funds, insurance companies and pension funds have best chance of channeling financial savings. While bank financing is by far the most preferred mode of funding, as such more companies should come out with bonds.

"The Indian bond market has not grown the way it should have due to structural constraints dominance of banks in lending, risk appetite of investors limited to higher ratings, regulatory arbitrage between loans and bonds and prescriptive regulatory limits on investments," noted the study.

Factors such as dominance of banks in lending, risk appetite of investors limited to higher ratings, regulatory arbitrage between loans and bonds, and prescriptive regulatory limits on investments are hindering the growth of corporate bond market in India.

"Also, retail (individuals) participation in debt markets is almost non-existent, even though the Indian investor psyche is skewed towards fixed income instruments with as much as 47 percent of the annual household financial savings flowing into bank fixed deposits," said the report.

Highlighting the importance of a thriving corporate bond market, it said, "It would be a win-win for both industry participants and investors - issuers will benefit from being able to generate stable funding at low costs, while investors can get secure and predictable cash flows with higher returns compared with plain-vanilla bank fixed deposits."

The report further stated that in the long run, this also offers economic benefits to the country as a whole, and is growth-conducive as it becomes especially important for funding the government's ambitious infrastructure agenda, which will require an estimated Rs. 43 trillion in the five fiscals to 2020.

Considering the major role of individual investors, the study highlighted the urgent need to promote vigorous investor education and awareness initiatives as part of encouraging measures undertaken by regulators. (ANI)

fiscal autonomy Srinagar [India], June. 28 (ANI): Jammu and Kashmir Minister of Finance Haseeb A Drabu today said the state government will factor in constitutional, legislative, administrative and institutional issues distinct to the state, while implementing the Goods and Services Tax (GST) Bill in the State.

Full Story >>

New Delhi [India], June 28 (ANI): Finance Minister Arun Jaitley on Wednesday said that all decisions in connection with the Goods and Services Tax (GST) Bill were taken after building consensus with states and political parties.

Full Story >>

New Delhi [India], June 28 (ANI): Airbnb democratizes tourism by bringing its economic benefits to communities that typically haven't shared in these benefits in the past.

Full Story >>

New Delhi [India], June 28 (ANI): World's largest player for South-Asian content, YuppTV on Wednesday announced its partnership with Fox Star Studios, one amongst the leading production houses of today.

Full Story >>

New Delhi [India], June 28 (ANI-NewsVoir): WittyFeed, World's second largest and India's largest content marketing company has rebranded itself and launched a new user interface. The brand also relaunched its logo, tagline and its look and feel keeping the new vision and brand philosophy in mind.

Full Story >>

New Delhi [India], June 28 (ANI-NewsVoir): SBI Mutual Fund, the fifth largest (by AAUMs) asset management company in the country would be the first Indian Mutual Fund Company to complete 30 years of successful operations on Thursday, June 29, 2017. SBI Mutual Fund was the first bank sponsored Mutual Fund to have been registered under SEBI.

Full Story >>

FreeCharge crosses 500 mn transactions

Updated: Jun 28, 2017 16:52 IST     

New Delhi [India], June 28 (ANI-BusinessWireIndia): Amidst increasing digital payments preference and awareness amongst consumers, FreeCharge today announced that the number of transactions on its platform has crossed 500 million, with the value of these transactions exceeding USD 1.2 billion.

Full Story >>

Marico appoints Ananth Narayanan to its Board of Directors

Updated: Jun 28, 2017 16:31 IST     

New Delhi [India], June 28 (ANI): India's leading Consumer Products Group Marico on Wednesday announced appointment of Ananth Narayanan on its Board of Directors as an Additional (Independent) Director.

Full Story >>

Fin Min setups special cell for smooth GST roll-out

Updated: Jun 28, 2017 16:29 IST     

New Delhi [India], June 28 (ANI): To brace the successful roll out of the Goods and Services Tax (GST), the Finance Ministry on Wednesday setup a special cell in the North Block dedicated entirely for the uniform indirect tax system, which will subsu

Full Story >>

New Delhi [India], June 28 (ANI): India's leading e-commerce giant, Amazon.in today announced the setting up of 16 'GST Cafes' across 11 cities to help sellers understand the nuances of GST and transition seamlessly through the entire process. In line with Amazon.in's continuous efforts to enable its sellers be GST-compliant, these cafes, available from June 26th, 2017 will be available for a duration of two weeks to train and empower sellers on the implications of the new GST tax.

Full Story >>

New Delhi [India], June 28 (ANI-NewsVoir): Aeries Financial Technologies Pvt. Ltd., a fin-tech company promoted by serial entrepreneur and private equity investor V. Raman Kumar, today announced that CASHe, India's fastest growing loan giving app for young salaried professionals has reached a phenomenal milestone of disbursing loans worth Rs. 100 crore to over 25,000 of its loyal customers.

Full Story >>

New Delhi [India], June 28 (ANI): SAIC Motor Corporation Ltd. on Wednesday announced its plan to enter the Indian automobile market through a fully-owned car manufacturing facility in the country.

Full Story >>

New Delhi [India], June 28 (ANI): Macmillan Education, one of the world's leading publishers of English Language teaching and school curriculum materials, has today launched the ICAS programme for the Indian subcontinent. Currently 14,500 schools in over 20 countries participate in ICAS and over 8.9 million students are being assessed under ICAS globally.

Full Story >>

New Delhi [India], June 28 (ANI): As businesses across the country gear up for the GST (Goods and Services Tax) rollout on July 1, ClearTax, India's largest income tax returns e-filing and enterprise compliance service provider, is gearing up to release its GST e-learning course in 20 regional languages including Kannada, Telugu, Tamil, Marathi, Gujarati, Bengali, etc.

Full Story >>

New Delhi [India], June 28 (ANI-NewsVoir): In an endeavor to ease out the immediate fund requirements of entrepreneurs, who are starved of institutional credit, Cash Suvidha is increasingly becoming a popular platform for hassle free unsecured loans.

Full Story >>

New Delhi [India], June 28 (ANI): Rajasthan's fastest growing NBFC licensed by RBI, Finova Capital has announced on-boarding Rahul Sahney and Anurag Agrawal as Chief Operation Officer and head of Credit and Operations at Finova Capital.

Full Story >>

New Delhi [India], June 28 (ANI): Always ahead of the innovation curve, Rubique has yet again demonstrated its focus on making financial solutions accessible to as many users as possible. The one-stop online marketplace providing technology enabled end-to-end solutions to financing needs of individuals and SMEs has just localised its Rubique Associate app.

Full Story >>

New Delhi [India], June 28 (ANI-NewsVoir): HDFC ERGO General Insurance Company, India's third largest non-life insurance provider in the private sector and Utkarsh Small Finance Bank on Tuesday signed a corporate agency agreement for the distribution of general insurance products through the bank's network of branches across the country.

Full Story >>

Tapp Me's on demand service model in expansion mode

Updated: Jun 27, 2017 18:44 IST     

New Delhi [India], June 27 (ANI-Newsvoir): Tapp Me, a Gurugram-based start-up offering hassle-free day-to-day repair and maintenance services for homes and offices, has taken an initiative of creating job opportunities for local technicians in the emerging smart cities of India. After an extensive market research, a model has been developed providing these local technicians regular earnings by working on a profit sharing basis with Tapp Me.

Full Story >>

i2iFunding emerges as first P2P lending player

Updated: Jun 27, 2017 18:38 IST     

New Delhi [India], June 27 (ANI-Newsvoir): The Indian P2P lending industry is in the nascent stage of development.

Full Story >>