CII suggests developing corporate bond market for infra funding needs 20/10/2014

CII suggests developing corporate bond market for infra funding needs
20/10/2014 10:43
According to industry body CII, India should emulate global best practices to develop a vibrant corporate bond market, which can play a crucial role in helping garner investments to the tune of Rs 64 lakh crore that are needed to develop infrastructure in FY'15-19. The industry body had recommended that India needs to focus on some key measures like broad based development of government securities market, supportive taxation structure, uniform stamp duty, enhance institutional participation by re-visiting investment norms, institute a robust credit enhancement framework and strengthen bond holder protection mechanism. "Indian economy is at a crossroads where development of corporate bond market is required for meeting the funding requirements of the industry and the economy. Thus, it becomes imperative to study the successful global models for benchmarking best practices and devising an implementable roadmap for the Indian economy," said CII Director General Chandrajit Banerjee. The CII report analysed the models of both emerging and developed countries like Brazil, Chile, South Korea, China, Singapore, Japan and the United Kingdom, and noted that a variety of regulatory and market actions stimulated market growth in these economies.