Looking at ways to improve secondary mkt liquidity, says SEBI ED Rao
This story was originally published at 14:51 IST on 28 August 2024
Register to read our real-time news.Informist, Wednesday, Aug 28, 2024
--SEBI Rao: Looking at ways to improve secondary market liquidity
--CONTEXT: SEBI ED Pramod Rao at Global Fintech Fest
--SEBI Rao: Looking at improving the sustainability finance framework
MUMBAI – The Securities and Exchange Board of India is looking at various ways to improve liquidity in the secondary markets, SEBI Executive Director Pramod Rao said at the Global Fintech Fest 2024 today.
"Just as the (RBI) governor has urged banks to be innovative about mobilising bank deposits, I urge the issuers of bonds and supported by the market infrastructure to actually do so for bonds as well," Rao said. On Aug 16, SEBI, in a consultation paper, proposed introducing a liquidity window facility for those who want to invest in debt securities by using put options exercisable on pre-specified dates or intervals.
Rao said SEBI is looking at ways to expand the sustainable finance frameworks for investors who are interested in it. He also said that urban infrastructure can be supported by municipalities which issue municipal bonds. "We have a very nascent market, maybe about 10 or 15 issuances that have occurred. The size is nothing to grow on. But if I look at the US market, the outstanding there is almost equal to our economy, $4 bln. When I think about that, and I think about annual issuances, $300 bln plus, the potential in India, the need that we have in our economy, is still there," Rao said.
In July 2023, Finance Minister Nirmala Sithraman launched the AMC Repo Clearing Ltd and Corporate Debt Market Development Fund. "Volume in the corporate bond repo market, exceeds 1 lakh crores (1 trln rupees). On an average, every month, we are seeing transactions greater than 10,000 to 15,000 crores (100-15 bln rupees) taking place," Rao said. End
US$1 = 83.95 rupees
Reported by Kshipra Petkar
Edited by Vidhi Verma
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
