Stock sell-off rolls to Asia, bonds rally on coronavirus risk stoking fears of a prolonged world economic slowdown
The spread of a new coronavirus has accelerated so much in Europe, Britain and North America that investors who once played down the virus are now re-assessing the risks, which means more volatility in financial markets
Lodha group's UK arm launches $225-mn bond issue in Singapore market; aims to refinance part of outstanding debt
Realty firm Lodha group's UK subsidiary on Thursday launched a $225 million-bond issue in the Singapore market to refinance part of its outstanding debt
Indian companies raised Rs 4.57 lakh crore through private placement of corporate bonds during the first 10 months of the current fiscal to meet business need
Govt announces 5 steps to curb rupee depreciation, widening current account deficit; PM Narendra Modi reviews economy
The government on Friday announced an array of steps, including removal of withholding tax on Masala bonds, relaxation for FPIs, and curbs on non-essential imports, to contain the widening CAD and check the rupee fall.
"These measures are intended to further deepen market development, enhance participation, facilitate greater market liquidity and improve communication," an RBI release said.
Currently also, some corporate bonds are traded on stock exchanges but a larger volumes take place in the spot market.
Corporate bond issuances have sharply declined post the central bank's measures since mid-July to curb volatility in the forex market by making rupee funds expensive, driving firms to bank loans.<br /><br />
Retail investors' flight for safety has helped corporate India raise Rs 35,610.7 crore through public issuance of debt but there is no denying that the corporate bond market in India is relatively underdeveloped and illiquid.
The RBI's working group released its draft report on Thursday outlining measures to boost liquidity in government securities and interest rate derivatives market.
The market for tax-free bonds will now be limited to the super rich and retail investors, while insurance firms and mutual funds may stay off because they are not taxed on the interest income or coupon of the debt they buy.
Many investors have locked into higher rate fixed deposits and fixed maturity plans.In doing so, they have missed out on the potential of corporate and government bonds.