Bond Markets in India

48 Pages Posted: 23 Jun 2008

Date Written: June 21, 2008

Abstract

Bond markets in India have witnessed a sea change since the early 1990s. The government securities market has practically emerged since the mid-1990s. Trading platforms and settlement mechanisms have improved and new instruments have been experimented with, with varying degrees of success. In comparison, with practically no new primary market issuance of corporate bonds (except in the private placement segment), the current state of the corporate bond market in India is till nascent although in the last 2-3 years it has witnessed significant reform activities. The package of regulatory and infrastructural changes recommended by the Patil committee in 2005, partly implemented already, is likely to increase the primary and secondary market activity.The market for asset securitization in India is relatively small but has demonstrated significant growth in recent years. Asset-backed securities have led the market with mortgage-backed securities lagging. Corporate loan securitization is also considerable but mostly in the form of single loan sell-offs rather than pools of loans as in Collateralized Debt Obligations (CDOs) as securities. Securitization of trade credit or receivables is yet to develop.

Keywords: Bond, India

JEL Classification: G15

Suggested Citation

Chakrabarti, Rajesh, Bond Markets in India (June 21, 2008). Available at SSRN: https://ssrn.com/abstract=1149322 or http://dx.doi.org/10.2139/ssrn.1149322

Rajesh Chakrabarti (Contact Author)

O. P. Jindal Global University ( email )

Sonepat Narela road
Sonepat
Sonepat, Haryana 131001
India

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