Sebi may allow large corporates to float bonds for 1/4th of fund needs: FM

New Delhi: Finance Minister Arun Jaitley today said market regulator Sebi may consider mandating large corporates to use bond market to finance one-fourth of their funding needs. The move is aimed at deepening the corporate bond market and encourage companies to tap this route for funds.

Presenting the Union Budget 2018-19, Jaitley also said that some PSUs’ assets will be monetised through the infrastructure investment trust (InvIT) route. Sebi has been taking a slew of measures to deepen the bond market. These include allowing foreign portfolio investors (FPIs) to invest in unlisted corporate debt securities as well as putting in place a new framework for consolidation in debt securities.

In its annual report, Sebi had said: “Developing a liquid and vibrant corporate bond market further is an important agenda for enhancing the role of the Indian securities market in channelising long-term finance. Sebi will work with all stakeholders for this.”