Sebi chairman Ajay Tyagi says framework for 'on-tap' bonds to be issued soon; supply of corporate bonds likely to more than double
6 years, 3 months ago

Sebi chairman Ajay Tyagi says framework for 'on-tap' bonds to be issued soon; supply of corporate bonds likely to more than double

Firstpost  

Tyagi said there is an opportunity for development of bond markets in the present NPA crisis Mumbai: Sebi chairman Ajay Tyagi on Wednesday said the regulator will soon issue the operational framework for ‘on-tap’ bond issuance by corporates. This is expected to nudge large companies to tap corporate bond market for raising their debt, though the efficacy of the framework is yet to be tested, Tyagi pointed out. Fiscal 2016-17 can be marked as a defining year in this context, as funds raised from the corporate bond market touched an all-time high of Rs 6.7 trillion, surpassing the amount of bank credit. In view of the larger complementary role that debt market have to play along-side bank credit for financing economic activities, several policy measures have been taken by the government and regulators to develop the corporate bond market, the chairman said.

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History of this topic

India’s ‘sweet spot’ lures bond funds amid global market turmoil
5 months ago

India’s ‘sweet spot’ lures bond funds amid global market turmoil

Hindustan Times  

Global funds have poured money into India’s debt market for 14 weeks in a second streak of buying this year, evidence of the country’s appeal amid the ructions of worldwide financial markets. “India is in a sweet spot from a macro perspective and also from a monetary policy perspective,” said Jenny Zeng, chief investment officer for Asia Pacific fixed income …

Enabling framework needed to help companies issue ESG bonds domestically: RBI official
5 months, 2 weeks ago

Enabling framework needed to help companies issue ESG bonds domestically: RBI official

The Hindu  

“There is a need to create an ‘enabling framework‘ to help Indian companies issue environmental, social and governance bonds locally”, a senior Reserve Bank of India official said on Friday. Underlining that capital markets regulator SEBI which looks after the regulations for the bond markets has done significant work, Dimple Bhandia, the chief general manager of RBI, also ruled that …

More fintech NBFCs tap debt markets for expansion
1 year ago

More fintech NBFCs tap debt markets for expansion

Live Mint  

MUMBAI : Fintech startups operating as non-banking financial companies are increasingly turning to the bond market to secure funds for expansions due to the rising costs of bank borrowing. JM Financial reported that Fintech NBFCs raised ₹1,818 crore from the bond market in 2023, up from just ₹450 crore in 2022. “With demand for credit picking up, bank credit getting …

India Inc is losing appetite for offshore debt
2 years, 6 months ago

India Inc is losing appetite for offshore debt

Live Mint  

The pandemic-era overseas borrowing boom by Indian companies has started to slow as interest rates rise, the currency weakens, and the appetite for emerging market bonds diminishes. Measures announced by the Reserve Bank of India easing overseas borrowings by companies, including doubling the annual limit under the automatic route to $1.5 billion and raising the all-in cost cap for foreign …

RBI lowers single, group borrower limit for urban cooperative banks
4 years, 10 months ago

RBI lowers single, group borrower limit for urban cooperative banks

Live Mint  

The Reserve Bank of India on Friday lowered the single borrower and group exposure limit for urban cooperative banks to 15% and 25% of tier I capital, respectively, to reduce concentration risks arising out of such large loans. UCBs should have at least 50% of their aggregate loans and advances of not more than ₹25 lakh, or 0.2%, of their …

Latest headache for Indian firms: Sluggish bond market
5 years ago

Latest headache for Indian firms: Sluggish bond market

Live Mint  

India needs a bigger bond market now more than ever, to help get funds to cash-strapped companies cut off from their shadow lenders by a crisis in that sector. Rupee corporate bond issuance seen increasing little in 2020 A stalling in issuance also undercuts attempts by Finance Minister Nirmala Sitharaman and predecessors to expand India’s corporate bond market to better …

RBI increases banks' loan exposure limit to single NBFC from 15% to 20% of its capital base
5 years, 4 months ago

RBI increases banks' loan exposure limit to single NBFC from 15% to 20% of its capital base

Firstpost  

Banks’ exposure to a single non-banking financial company is restricted to 15% of their available eligible capital base Mumbai: The RBI on Thursday increased loan exposure limit of banks to a single NBFC from 15 percent to 20 percent of its capital base, a move that will help increase credit supply to the crisis-ridden shadow banking sector. According to the …

Sebi proposes changes to norms for municipal bonds, minimum subscription amount reduced
5 years, 8 months ago

Sebi proposes changes to norms for municipal bonds, minimum subscription amount reduced

Firstpost  

In 2017, Sebi eased rules governing the issuance of municipal bonds in order to boost such bond market New Delhi: Sebi on Monday proposed changes to regulations for the issuance of municipal bonds as part of efforts to enable fundraising by bodies similar to municipalities. Besides, the minimum subscription amount for municipal bonds on a private placement basis be reduced …

SEBI cracks whip on corporates’ reluctance to issue bonds, but will it work unless the RBI too acts in tandem?
6 years, 4 months ago

SEBI cracks whip on corporates’ reluctance to issue bonds, but will it work unless the RBI too acts in tandem?

Firstpost  

The bond market is unforgiving unlike banks in the pre-IBC era, especially public sector banks that have shown monumental patience with defaulters all these years until the IBC came along. The market regulator SEBI has, at last, got tough with big corporates’ reluctance to issue bonds for their long-term needs which in its perception are a time span of more …

Large companies to raise 25% of long-term borrowings through corporate bonds: SEBI
6 years, 4 months ago

Large companies to raise 25% of long-term borrowings through corporate bonds: SEBI

Firstpost  

The board of SEBI has cleared the framework for enhanced market borrowings by large corporates and it would come into force from 1 April, 2019. Mumbai: Large listed companies will soon be required to raise at least 25 percent of their long-term borrowings through corporate bonds, with SEBI board approving a revised regulatory framework on Tuesday. Large corporates would have …

Sebi pushes firms to bond market to deal with bad loan issue
6 years, 6 months ago

Sebi pushes firms to bond market to deal with bad loan issue

Live Mint  

The Securities and Exchange Board of India is keen to mandate companies that have more than ₹ 100 crore as long-term borrowings compulsorily raise at least 25% of their funding needs by selling bonds. Sebi has joined the Reserve Bank of India in nudging corporates towards the bond market through its latest draft paper. The efficient risk pricing in bonds …

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