Quality of corporate sector disclosures should be improved: Viral Acharya

The deputy governor also stressed upon the need to expand the investor base in the corporate bond and government securities markets

Reserve Bank of India (RBI) Deputy Governor Viral Acharya has called for improving the quality of disclosures of the corporate sector in light of the recent defaults in commercial paper and corporate bond markets even when they were considered investment grade.

“These concerns are worthy of careful scrutiny and assessment relative to the best international practices to help fine-tune standards for the timely disclosure of default-relevant information by corporates,” the outgoing deputy governor said in a speech at the Indian School of Business, Hyderabad.

A lack of adequate disclosures raises the financing costs of corporate firms, especially sub-investment grade ones, and keeps