The government will work with Reserve Bank of India and Securities and Exchange Board of India to enable stock exchanges to allow AA rated bonds as collaterals, Finance Minister Nirmala Sitharaman said on Friday while presenting the Union Budget 2019-20 in Parliament.
"Corporate debt markets are crucial for the infrastructure sector. Though the number and value of bond issuances had gone up, there has been a dip in the last two years. The market is skewed in favour of private placement," she said.
Sitharaman said user-friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Numbers.
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