A well-developed corporate bond market is critical for any economy as it enables efficient allocation of funds, provides an avenue for corporates to access capital market directly without intermediation and facilitates long term financing. It also exposes corporates to closer scrutiny by investors and analysts/rating agencies, thus bringing in better market discipline. The presence of easier bank lending option is acting as a disincentive for large corporates to access capital markets, thereby insulating them from market mechanism which imposes market discipline by rewarding the borrowers having strong fundamentals with lower borrowing costs and imposing higher costs on less creditworthy companies. It is important to have alternate sources of funding for the corporate sector, both to finance growth and to strengthen balance sheets of investors as well as issuers.
The objective of the roundtable is to discuss the need for development of Corporate Bond Market in India and what more is required to be done by the financial market players, corporates and the regulators.
The Roundtable is specifically designed for CMDs/CEOs of banks, SEBI, IBA, NBFCs, CCIL, rating agencies and the regulatory departments of RBI.