|
New Delhi, July 4: : The Securities and Exchange Board of India (Sebi) should be entrusted with the job of framing guidelines for the debt markets, according to HSBC.
"There is an increasing demand for Sebi to intervene and regulate the debt market. Therefore, the market regulator should be the nodal agency for framing guidelines on markets," HSBC head (debt capital market and risk advisory) Rakesh Garg said here.
Addressing a seminar on ‘Strengthening the Debt Market’, organised by the Confederation of Indian Industry (CII), he said there was lack of proper monitoring after the issue of debt and due diligence by the arranger for the issue.
Mr Garg noted that 20 per cent of the debentures was unrated and that 50 per cent of it was guaranteed by Central and state governments.
He said Rs 60,000 crore were mopped up through private placement of debt and the estimated total outstanding of debt was over Rs 2,40,000 crore.
According to JP Morgan Chase treasurer V Srinivasan, although there was scope for online trading of debts, it would still take few years to materialise.
However, Ajay Shah, consultant in finance ministry, said that very soon a meeting would be convened to deliberate on the modalities of debt trading through "anonymous" screen.
According to National Council of Applied Economic Research (NCAER) director general Suman Bery, the debt markets would have grown more as compared to the present state, had it not been for the monopoly of State Bank and other nationalised banks. (PTI)
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
