Dependence on banks for infra project finance costly
Impacting the finances of banks and infrastructure developers, infrastructure development, which should have been funded by the corporate bond market, was done through banks.
Krishnan said at a CII event on corporate bond market, “From the first three pillars, the corporate bond market will develop high-grade instruments, whereas the fourth pillar would provide stability to lower-rated issuances.” Krishnan stressed on policy and regulatory reforms in the areas of instruments, participants, market infrastructure and bankruptcy process to develop the corporate bond market.
With considerable policy and regulatory reforms since 2005, the onus of scaling up the corporate bond market hinges upon companies now, said Chandan Sinha, Executive Director, RBI.
Source: Hindu Business Line
Banks, Chandan Sinha, Corporate bond market, Department of Economic Affairs, finance, high grade instruments, improving Infrastructure, Indian economy, Infrastructure, Infrastructure developers, Infrastructure development, KP Krishnan, Ministry of Finance, RBI
