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Topic: Bond Market
The retailer joins other stressed Indian issuers looking to build cash buffers to survive the coronavirus pandemic’s financial fallout.
At CPR Dialogues 2020, former SEBI chief U.K Sinha said there is a lack of accountability when it came to infrastructure financing institutions.
India needs to cut limits on foreign ownership of sovereign bonds & allow the rupee to trade more freely on international markets.
India’s credit crisis is impeding changes to rupee bond market, which has operated like a cosy club of a few big local banks & brokers doing deals.
India’s first planned foray into the overseas bond market may be stillborn due to its historical aversion to borrowing in foreign currencies.
Achieving a market-driven realistic exchange rate mechanism for the dollar was one of the key policy goals of the 1990-91 economic reforms in India.
The risk of foreign currency borrowing can be minimised if govt and RBI stick to FRBM Act and inflation-targeting frameworks. A Public Debt Management Agency also needs to be set up.
A news report claims the PMO is opposed to selling debt in foreign currencies, a day after a top finance ministry official overseeing the sale was transferred.
Subhash Chandra Garg, moved to power ministry Wednesday, was behind the budget announcement to raise funds from sovereign bond issuance overseas.
The deal will give global funds more access to Indian sovereign bonds, and may also let the country’s other issuers adjust debt sale prices.
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