Corporate Bond Market Needs To Become More Robust Because There Is Urgent Need To Diversify Funding Requirements

The corporate bond market needs to become more robust because there is an urgent need to diversify funding requirements from the banking sector, stated the Securities and Exchange Board of India (SEBI) Chairman, Ajay Tyagi while addressing the Inaugural session at the 11th edition of the Confederation Of Indian Industries (CII) Financial Markets Summit. The SEBI Chairman believes that development of bond markets is necessary to help the Government to achieve its target of investment in Infrastructure. It would be a challenging task to achieve the Government's target of achieving Rs 100 lakh crore investment in Infrastructure by 2024-25 unless the bond market is adequately developed, he noted.

The Chairman said that it is a misconception to think that reforms could take place only when there was a problem with the existing system or that reform only means radical changes by Government or the Regulators. Reforms, he added, was not just limited to fixing a broken structure but also includes incremental changes. The SEBI Chief further mentioned that the recovery in capital markets after the initial hit by the pandemic has been broad-based.

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