Indian Debt Market: Need for More Reforms
1Dr. A. Ruksana Banu, 2Dr. A. Abdul Raheem
1Assistant Professor, Department of Business and Accounting, Muscat College, Sultanate of Oman
2Associate Professor, Department of Economics, the New College (Autonomous), [University of Madras]
https://doi.org/10.47191/jefms/v4-i4-08ABSTRACT:
The Indian debt market while made out of securities, both Government and Corporate, is really overwhelmed by G-Sec with more than 90 per cent of Indian debt market, leaving little space for corporate securities. The focal government securities are the dominating and most fluid segments of the security market. Nonetheless, regardless of the expanded volumes, the quantity of members is restricted to around two dozen dynamic players. The focal government securities are the dominating and most fluid segments of the security market. Nonetheless, regardless of the expanded volumes, the quantity of members is restricted to around two dozen dynamic players. Since a lion's share of members is AAA – evaluated and 80 per cent of exchange is immediate, there exist settlement hazards. The market would further develop once uniform guidelines on accounting, valuation and so on are in place. Therefore, this paper highlights the need for more reform in Indian debt market.
KEYWORDS:
debt market, securities, market risk, investors, bond, interest rate.
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