ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Bond market measures will bring liquidity: Raghuram Rajan

Rajan had launched Masala Bonds in 2015.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bond market measures will bring liquidity: Raghuram Rajan
Rajan hoped for more vibrant Masala Bond market abroad to complement a "vibrant" domestic corporate bond market. Photo: IANS

Outgoing Reserve Bank of India Governor Raghuram Rajan, on Friday, said that the measures announced for bond markets by the central bank, aims at allowing greater participation, which will add liquidity in the fixed income market.

Rajan, while delivering the Annual Day lecture at the Foreign Exchange Dealers' Association of India (FEDAI ), explained the rationale behind the announcement of measures for the development of the fixed income and currency markets in his speech. 

Earlier this week, the RBI announced that the banks will be allowed to issue rupee-dominated bonds overseas, also known as Masala Bonds, under the Liquidity Adjustment Facility (LAF), for their capital requirements and to finance infrastructure and affordable housing.

"Greater access was allowed to retail investors, including to FPIs, to institution-dominated screen-based NDS-OM (Negotiated Dealing System-order matching) market so that they could trade in G-Secs using their demat accounts; however, the central bank would continue to be careful about broadening retail access in markets that require sophisticated understanding, such as complex derivatives", Rajan said.

While addressing, Rajan hoped for more vibrant Masala Bond market abroad to complement a "vibrant" domestic corporate bond market. He said, India is a current account deficit (CAD) country; India needs financing from abroad. 

Rajan had launched Masala Bonds in 2015.

"Foreign investors could also help deepen debt and derivative markets as they contributed to price discovery and liquidity. Yet, given India’s weak bankruptcy system, there was moral hazard built into unhedged foreign borrowing. Therefore, the RBI encouraged companies that did not have foreign exchange earnings to either issue long term dollar bonds, fully hedged shorter term bonds, or rupee denominated Masala Bonds abroad", Rajan added.

As corporations move to money and bond markets, the RBI will also nudge them further by imposing higher provisioning and capital requirements for banks on corporate lending when exposures become large, the Governor stated.

The RBI tweaked the lending norms to big corporates that usually take huge loans, which will hike the borrowing cost for them. 

Rajan's tenure will end on September 4. Urijit Patel, currently the deputy governor of the RBI, was announced as his successor last week. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Raghuram RajanReserve Bank of IndiaMasala BondsForeign Exchange Dealers' Association of India (FEDAI )
Written By: ZeeBiz WebTeam
Updated: Sat, Aug 27, 2016
03:11 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Former RBI Governor Raghuram Rajan joins Congress-led Bharat Jodo Yatra in Rajasthan Former RBI Governor Raghuram Rajan joins Congress-led Bharat Jodo Yatra in Rajasthan
Farm loan waivers kill credit culture, says former RBI Governor Raghuram Rajan Farm loan waivers kill credit culture, says former RBI Governor Raghuram Rajan
Raghuram Rajan says capitalism is 'under serious threat' after 2008 global financial meltdown Raghuram Rajan says capitalism is 'under serious threat' after 2008 global financial meltdown
Warning from ex-RBI governor Raghuram Rajan - 'Capitalism is under serious threat' Warning from ex-RBI governor Raghuram Rajan - 'Capitalism is under serious threat'
Raghuram Rajan: All Indians should be concerned Raghuram Rajan: All Indians should be concerned

LATEST NEWS

ITC Dividend 2023: Check record date, ex-date and payment date | ITC Share Price NSE Target

Stock Split: This small-cap company splits shares in 5:1 ratio after delivering 817% return in 5 years

BMC Budget 2023: Mumbai civic body increases its budget for 2023-24 by 15% to Rs 52,619 crore – know key highlights

Pathaan Box Office Collection: Shah Rukh Khan-starrer raises Rs 729 crore worldwide - Check domestic collection after Day 10| OTT release date here

Vani Jayaram songs list in Telugu, Malayalam and Kannada: Remembering veteran playback singer who sung over 10,000 songs

JBM Group to foray into electric bus markets of THESE 6 states - check list here

Govt announces substantial hike in windfall tax on locally produced crude oil, diesel and ATF

Ajit Kumar starrer Thunivu OTT release date Announced! Check when and where to watch

Lupin's subsidiary recalls over 5,500 skin treatment ointments from US amid manufacturing issue

Gold Price Today (February 4): Yellow metal dips over Rs 2,500 from record high - Check rate in Delhi, Mumbai and other cities

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV