Govt for bond mkt to raise funds for long-term finance, says Sebi

The government is looking at promoting bond market for raising funds as banks are not the vehicles for long term finance, a SEBI official said on Wednesday.

Addressing a national conference on Bond Market--'Meeting Investor Needs Through Fixed Income Markets' organised by ASSOCHAM here, SEBI whole-time member G Mahalingam said, "The government I would say is definitely looking at pro-bond market because for the reason that today banks are not the vehicles for long term finance at all". He said the time has come to look at bonds as the long term finance vehicles "and if bonds have to serve the purpose of long term finance vehicles perhaps a lot more incentivisation... perhaps could be thought of".

Mahalingam further said, "We need to create an eco system... if we could do that I am sure our bond market, apart from the overall outstanding issuances which are growing at a rapid pace, we could also talk about a good vibrant secondary market I am sure in just about three to five years. It is something where all of us need to work together."

"Today, the bond market is getting favoured and the Indian bond market is tremendously in favour as far as investor appetite is concerned," Mahalingam said.

He said awareness about bonds is pretty minimal. "People are not aware about the bonds. We need to put in more efforts, bring out greater clarity, greater ease and greater convenience as far as the bond market is concerned," he said.