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Bond markets to be brought at par with equity markets: FM

Jaitley also announced setting up of a Task Force to establish a sector-neutral Financial Redressal Agency that will address consumer grievances against all financial service providers

Press Trust of India  |  New Delhi 

Arun Jaitley, Budget 2015
FM Arun Jaitley entering the Parliament to present Budget 2015 (Pics by Sanjay Sharma)

To promote investment climate, Finance Minister Arun Jaitley today said Indian bond would be deepened to bring it at par with the equity .

At the same time, he also announced setting up of a Task Force to establish a sector-neutral Financial Redressal Agency that will address consumer grievances against all financial service providers..

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With an aim to remove unnecessary restrictions in the currency derivative markets, a committee on Indian Financial Sector will also shorty submit a report to the government on proposal to revamp this segment.

"One vital factor in promoting investment in India, including in the infrastructure sector, is the deepening of the Indian Bond market, which we have to bring at the same level as our world class equity market.

"I intend to begin this process this year by setting up a Public Debt Management Agency (PDMA) which will bring both India's external borrowings and domestic debt under one roof," Jaitley said in his speech today.

He also announced changes in law to clearly provide that control on capital flows as equity will be exercised by the government, in consultation with the RBI.

Leading bourse BSE's CEO Ashishkumar Chauhan said the government's thrust on deepening the bond market is a welcome move.

"BSE will work with the Government to implement government and corporate debt market reforms for primary as well as secondary marke," he said.

He further said that creation of a Public debt management agency is part of the FSLRC implementation and he welcomes the move to merge FMC with SEBI.

To energise the capital markets, Finance Minister Arun Jaitley had in the budget, last year, suggested need to take steps to deepen the currency derivatives market by eliminating "unnecessary restrictions".

In an update on the proposal the document tabled today said: "Sub-Committee of Standing Council of Experts on Indian Financial Sector is expected to shortly submit report comprising policy proposals on revamping the currency derivatives market by eliminating unnecessary restrictions".

"The matter was also discussed by the FSDC and RBI/SEBI are being advised to take necessary action," it added.

The document also stated that Standing Councils meeting to be held soon to discuss the report of the sub--committee.

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First Published: Sat, February 28 2015. 15:56 IST