Khan report on corporate bonds to be implemented in six months, says Jaitley
Many mature markets have resorted to protectionism lately and this does discourage developing markets from opening up. But Finance minister Arun Jaitley made it very clear that India will continue to maintain the open market approach. This approach is displayed in various government initiatives, the latest being the corporate bonds market.
During finance ministry CII organised event, Jaitley said “The government has almost accepted all the recommendations made by the Khan panel on corporate bonds. The H R Khan committee provides recommendations on reissuance; standardisation of corporate bond issuance; FPIs investment in corporate bonds; electronic book for private placement of bonds; uniform valuation norms; electronic trading platform; credit rating agencies; integrated trade repository; Credit Default Swaps (CDS); repo in corporate bonds; bond Index; rationalisation of stamp duty and so on. Jaitley assured that the recommendation of the committee will take place within 6-8 months. Reiterating the sentiments of Jaitley, Economic Affairs Secretary Shaktikanta Das assured that it will take place within 6 months. Through this, the government wants to deepen bond markets in retail side, he stated. Jaitley added that BRICS (Brazil, Russia, India, China, South Africa) countries can use each other learning to develop their own bond markets. “Every BRICS countries have faced their own set of challenges,” said Jaitley.
He also stressed that India requires lot of investment to achieve speedy growth. “There is a lot of deficit in funds required for undertaking various projects and to bridge the gap we have to tap new sources of investment.”