Indian corporate bond market still remains a mirage

........Many in the government and elsewhere have often stressed on the need for developing the Indian corporate bond market to fund infrastructure projects given that banks which have funds of short- to medium-term maturities run the risk of a mismatch by financing long-term bonds. But the central bank had in the past not quite shared this view. Former Governor Y.V.Reddy has said that nowhere in the world are infrastructure projects financed by the public bond market except perhaps in the deepest bond market in the world - the US. It may not be easy for the government to nudge the regulators in that direction considering the local version of a fiscal cliff. And, as a long-term observer of the Indian securities market put it, it is also a matter of perspective. The RBI reckons that it has done quite a bit on reforming and deepening the government securities market. But the fact remains that.........

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