15 Role of Indian Corporate Bond Market in a Sustainable_Khushboo_FINC044

7/28/2019 15 Role of Indian Corporate Bond Market in a Sustainable_Khushboo_FINC044

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ISBN - 978-93-81583-46-3

National Conference on Emerging Challenges for Sustainable Business 2012273

Role of Indian Corporate Bond Market on SustainableBusiness: Emerging Challenges and Issues

Khushboo Agnihotri

Amity University, Uttar Pradesh

[email protected]


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Role of Indian Corporate Bond Market in A Sustainable Business: Emerging Challenges And Issues


ROLE OF INDIAN CORPORATE BOND MARKET IN A

SUSTAINABLE BUSINESS: EMERGING CHALLENGES AND ISSUES

Abstract

Sustainable business is any organisation that conducts its business activities to ensure that all

processes, products and manufacturing activities adequately addresses the current business

issues and concerns while maintaining a profit. The study covers the role of finance in the

process of sustainability in general and of corporate bond market in particular. The private

corporate bond market provides an alternative means of long-term finance (alternative to

financing by banks and financial institutions) to corporates. The research paper includes a

study on the issues and challenges facing the corporate bond market in promoting sustainable

business which affect the business environment, business growth and the society in general

From a broader sense of macroeconomic stability and growth, the complementary nature of

bank financing and direct financing by the corporate debt market in financing corporates is

desirable. The study would also include a discussion on industries that need to be prioritised

while allocating finances by the financial markets or institutions. Factors that limit the

development of corporate bond market in India will also be reviewed along with the measures

to overcome the constraints.

Key Words: Sustainability, corporate bond market, credit rating, private placement

1.1 Introduction

Growth of a business is essential for sustaining its viability, dynamism and value-

enhancing capability. In this regard, sustainability reflects the ability of a firm to earn higher

profits and compete with the rivals in an effective manner. The three widely used measures of

business/corporate growth are increase in sales, increase in profits and increase in assets.

These growth objectives can be achieved by a business by expanding the existing market for

its product and entering into new markets for which they require finances.

The financial support needed by a business for its expansion can be met by raising

funds through various instruments of stock market such as shares, bonds, mutual funds and

initial public offerings. It can also raise capital by ploughing back its profits and through

public deposits. The key to all expansion plans of a business involves evaluating the

company's strengths and weaknesses in the light of the various business risks that it may have

to face. Moreover, an entrepreneur, in order to successfully expand and grow its business on a

sustained basis, must take into account the basic regulatory requirements of the country.


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Therefore, an entrepreneur must make a thoughtful analysis of all the possible options

available to him for expanding his business by taking into account the inherent risks, the

financial requirements and the surrounding regulatory framework.

There has been a growing significant importance of direct debt financing in the course

of a businesss growth and development. It has become essential that, as the economy

develops, companies need to secure external funding through more important sources like

direct debt financing rather than from the internally generated funds. This is where the

importance of corporate bond and the emerging significance of the corporate bond market

come into play.

1.2 Objectives

The objective of this research paper is to understand the functioning of the corporate

bond market in India and how a vibrant corporate bond market can stimulate the growth of a

business globally as well as regionally while maintaining stability. It will also be studied

what role it plays in economic development in regional as well as global platform. It will also

be shown that a significant corporate bond market is in a much stronger position than the

banking system to give free reign to the important disciplinary role exercised by the market

forces. Another dimension that will be covered in the research would be whether the market

is making significant impact in the business sector; the limitations of the Indias corporate

bond market and the ways to improve its role will also be suggested in this study.

1.3 Research Methodology

The Research study has been conducted mostly on secondary sources of information

procured from various government and SEBI publications, similar studies conducted in the

field, internet sites and various other publications like The Economic Times, The Business

Standards, etc. Research design is descriptive in nature. Literature review is followed in the

next heading.

1.4 Review of literature

The functioning of corporate bond market has been an area of interest to academicians

as well as bond market participants i.e. issuers, underwriters, brokers, bankers, investors, etc.


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Thinkers, professionals and academicians have contributed to the vast amount of literature

available in this area. However, all literature cannot be covered in the study due to space

constraints. Henceforth, only few studies conducted in this field which shows the significance

of corporate bond market shall be reviewed.

M.R. Chatu Mongal Sanakul (2000) discussed the role of Bond market in the overall

development of the financial sector and the economy as a whole. He said that bond market is

an important alternative to bank lending. During a crisis, banks themselves often come under

liquidity pressure, from both domestic and foreign withdrawals. In such a situation, the

process of intermediation suffers. At this point of time, the existence of a deep and liquid

bond market allows financial institutions to prepare themselves for better risk management.

One important issue discussed by Dubravko Mihaljek, Michela Scatigna and Agustin

Villar (June 2002) is that bond market development has also been associated with changes inpatterns of financing for the private sector. They also agreed that since the Asian financial

crisis, the emerging economies should rely more on domestic debt markets so as to avoid

concentrating intermediation uniquely on banks. In particular, a developed corporate bond

market can help avoid a credit crunch during periods of weakness in the banking sector.

Private debt markets are also expected to instill more competition into the financial system

and offer long-term financing.

It has been argued that firms may face a higher effective cost of funds in the absence

of the bond market; that business investment policies may be biased in favour of short-term

projects and away from entrepreneurial ventures; and that firms can expose themselves to

excessive foreign exchange risks if they attempt to compensate for the lack of a domestic

bond market by borrowing in international bond markets (Yoshitomi and Shirai (2001).

As per the study conducted by ICMA Centre (2008), following are the likely benefits

to be derived from the creation of a corporate debt market:

Access to new sources of capital for existing, large firms. Many larger Indian firmsalready raise capital without undue difficulty through the Indian banking sector and

international debt issues, however a corporate debt market would provide an

additional source of finance.

Access to capital markets for smaller firms, although these are likely to be low rated. The development of a competitor source of alternative funding to the (dominant)

banking sector. In the absence of such a market, banks face limited competition,


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which reduces the pressure for innovation and the provision of new methods of

finance for Indias growing corporate needs.

It is also argued in the study that the current market is not, in fact, a true market for corporate

debt, since:

Relatively few real corporates make debt issues. Most issues are either by public-sector entities or by financial institutions raising money to lend onwards.

Almost all issues are private placements to a small group of investors, often just asingle bank thus they are closer to syndicated loans than bond issues.

All the studies mentioned in the literature survey show that many studies have been

conducted on the theme of bond market.

2.0 CORPORATE BOND MARKET

2.1 Introduction

The three main sources of funding of enterprises in an economy are equity

instruments, bonds and bank lending. Of these funding instruments, bond financing have

been gaining considerable importance in recent times. It is here, that the importance of

corporate bonds comes into play.

Lately, corporate bonds are considered to be one of the main sources of external

finance for businesses. Because of this demand for corporate bonds, it has caused the demand

for financing by banking institutions to come down. It was the fluctuation in the economic

and financial position of a country that led the investors to look for varied options in making

their investment. Subsequently, investors started looking for alternatives wherein there was a

much increased interest rate return as compared to the existing financing options and hence,

the demand for corporate bonds increased even further.

2.2 Meaning

Corporate bonds are debt instruments issued by a corporation, mostly with a greater

than one year maturity term. In other words, corporates who wish to raise funds, issue bonds

in the form of corporate bonds. These bonds are a form of credit and helps in raising funds

for investment purposes as well as for initiating new projects. The company promises to

make a coupon or interest payment to investor, which will be a certain fixed amount made


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annually or half yearly. By the end of the term which is defined at the outset, the company

repays the bond.

As opposed to the sovereign bond markets, corporate bond market encompasses many

issuers of varied degree and also accompanied by terms of contract which vary from the usual

standard ones. Because of this, the corporate bonds are of lower risk and of lower return than

equities. This is considered to be one of the main attractions of corporate bonds.

The issuers of these bond also hire agencies to rate the creditworthiness of such bonds

which is based on how the agencies regard the financial stability of the firm which issue the

corporate bonds, payment making capacity to bond holders as well as the protection given to

bondholders in times of financial difficulties faced by the firm or business. Bonds issuers are

rated in a manner such that the higher rated ones have a lesser chance to default on the

payments to be made. The bonds are generally designated as investment grade or non

investment grade. The main rating agencies in this field are CRISIL, CARE, ICRA, Duff n

Phelps and Fitch.

2.3 Advantages

Corporate debt securities are advantageous in various aspects. These advantages

include the following:

It generally gives higher interest rates to the investors than other fixed-incomeinstruments, like certificates of deposit and Government securities.

It is a dependable source of lucrative income, paid either monthly or semi-annually,that can be used up for current expenses or be reinvested for future needs.

It provides relative safety to principal, subject to credit quality, assuming that thesecurities will be held until maturity.

It provides diversity of choice among issuers, maturity dates and quality ratings andalso increases the flexibility to meet a broad range of investment objectives.

It undertakes the function of financial disintermediation by acting as an agencybetween those who have surplus money (savers) and those who need it for further

investment (borrowers). Thus, reducing the cost of intermediation.

Unlike bank loans, bonds have a longer duration debt issuance scheme therebymaking infrastructure funding more easy.


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The main essence of securitisation is all about an easily marketable instrument andunless there is a vibrant bond market, the true functioning of securitisation may not

take place.

An active bond market will enable private parties to access the market to fund projectswith long duration.

2.4 Significance

The Corporate debt market is highly significant for the overall growth of the firms

sector in particular and the economy as a whole. Its significance is represented as below:

i) In any country, countries face different types of financing choices at different stages

of development. Some studies have observed that while developed countries rely more on

market-based sources of finance, the developing countries rely more on bank-based sources.The development of a corporate bond market, for direct financing of the capital requirements

of corporates by investors assumes paramount importance, particularly in a liberalised

financial system. From the perspective of developing countries, a liquid corporate bond

market can play a critical role in supporting economic development as it supplements the

banking system to meet the requirements of the corporate sector for long-term capital

investment and asset creation.

ii) In many Asian economies, banks have traditionally been performing the role of

financial intermediation. The East Asian crisis of 1997 underscored the limitations of weak

banking systems. The primary role of a banking system is to create and maintain liquidity that

is needed to finance production within a short-term horizon. The crisis showed that over-

reliance on bank lending for debt financing exposes an economy to the risk of a failure of the

banking system. In times of financial distress, when banking sector becomes vulnerable, the

corporate bond markets act as a buffer and reduce macroeconomic vulnerability to shocks

and systemic risk through diversification of credit and investment risks. By contributing to a

more diverse financial system, a bond market can promote financial stability (IOSCO, 2002).

iii) The available economic literature suggests that meeting the demand for long-term

funds by corporates, especially in developing economies requires multiple financing channels

such as the equity market, the debt market, banks and other financial institutions. Indirect

financing by banks and direct financing by bonds also improve firms capital structures. From

a broader sense of macroeconomic stability and growth, the complementary nature of bank


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financing and direct financing by the corporate debt market in financing corporates is

desirable (Takagi, 2001).

iv) Besides providing a channel for financing investments, the corporate bond markets

also contribute towards portfolio diversification for holders of long-term funds. Effective

asset management requires a balance of asset alternatives. In view of the underdeveloped

state of the corporate bond markets, there would be an overweight position in government

securities and even equities.

v) Another significance is that the financial structure of corporates has implications

for monetary policy. Bond markets give an assessment of expected interest rates through the

term structure of interest rates. The shape of the yield curve provides useful information

about market expectations of future interest rates and inflation rates (Report on Currency and

Finance 2005-06).

2.5 CORPORATE DEBT MARKET IN INDIA

Currently, when India is attempting to sustain its high growth rate, it is necessary that

financing constraints in any form are removed and alternative financing channels are

developed in a systematic manner for supplementing traditional bank credit.

In India, banks and FIs have traditionally been the most important external sources of

finance for the business sector. The corporate relied more on banks for meeting short-termworking capital requirements and DFIs for financing long-term investment. However, with

the conversion of two large DFIs into banks, a demand had appeared for long-term finance.

Commercial banks have managed to meet this demand, but only to an extent as there are

asset-liability mismatch issues for banks in providing longer maturity credit. The problems

associated with the diminishing role of DFIs appeared less severe as this period coincided

with a decline in the reliance of the corporates on external financing. However, later on, this

situation changed.

In the 1990s, the equity market in India witnessed a series of reforms, which helped in

bringing it on par with international standards. While the rest of Indias capital market has

forged ahead and now offers a world class market, its corporate debt market has not

flourished due to lack of market infrastructure and a comprehensive regulatory framework.

For a variety of reasons, the issuers resorted to private placement of bonds as opposed to

public issues of bonds. India has successfully developed some of the critical infrastructure


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requirements, such as a risk-free yield curve and credit rating agencies (linked to global

agencies), but the market remains underdeveloped.

2.5.1 Structure of Indian Corporate Debt Market

The structure of the Indian Corporate Debt Market can be explained under two broad

sub sections:

A) Primary Corporate Debt Market

The primary corporatemarket structure consists of issuers, instruments, processes,

investors, rating agencies and regulatory environment.

i) Issuers-

Indian Debt Market has almost all possible variety of issuers as is the case in many

developed markets. It has large private sector corporates, public sector undertakings (union as

well as state), financial institutions, banks and medium and small companies. Thus, the

spectrum appears to be complete. Two main classes include private sector corporates and

banks.

ii) Instruments

Till recently Indian debt market was predominantly dominated by plain vanilla bonds.

Over a period of time, many other instruments have been issued. They include partly

convertible debentures (PCDs), fully convertible debentures (FCDs), deep discount bonds

(DDBs), zero coupon bonds (ZCBs), bonds with warrants, floating rate notes (FRNs) / bonds

and secured premium notes (SPNs) (M. T. Raju, Upasana Bhutni, Anubhuti Sahay 2004).

iii) Processes

There are several processes that are in vogue in India as well as in other markets. The

more popular ones are public issue and private placement routes.

iv) I ntermediaries

Two classes of intermediaries required for the proper development of debt market are-

brokers and investment bankers/ merchant bankers. In some markets, it is observed that there


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are dedicated Debt Managers who facilitate subscription or sometimes subscribe to the

issue and later on even facilitate trading in bonds. India needs a dedicated Bond Manager

concept.

v) Investors

For the development of Corporate Debt Market / Fixed Income Securities Market, it is

necessary and sufficient to have large as well as diversified institutional investors.

Institutional Investors in India are few in number and the variety also is limited. We have few

participants in the debt market.

vi) Rating agencies

India has a well developed Credit Rating Agency system and rating agencies are well

experienced and respected. By and large, their ratings do carry confidence in the market.

B) Secondary Corporate Debt Market

Appropriate structure of secondary market is vital for trading, clearing and settlement.

Some of the structural features are as follows:

i) Trading Platform

Corporate debt instruments are traded either as bilateral agreements between two

counterparties or on a stock exchange through brokers. Throughout the world, the majority of

transactions in corporate bonds are conducted in the over-the-counter (OTC) market by

bilateral agreements. In India, corporate bonds are traded, mostly, on wholesale debt market

(WDM) segment of NSE. The NSE introduced a transparent screen- based trading system in

the whole sale debt market, including government securities in June 1994. The WDM

segment of NSE has provided a platform for trading / reporting of a wide range of debt

securities.(M. T. Raju, Upasana Bhutni, Anubhuti Sahay 2004).

ii) Clearing and Settlement Mechanism

Primary responsibility of settling trades concluded in the WDM segment lies directly

with the participants whereas the exchange monitors the settlement. Mostly these trades are

settled in Mumbai. Trades are settled gross, i.e. on trade for trade basis directly between the


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constituents / participants to the trade and not through any clearing house mechanism.

Settlement is on a rolling basis, i.e. there is no account period settlement. The Exchange

currently allows settlement periods ranging from same day (T+0) settlement to a maximum of

two business days from the date of trade (T+2).

iii) I nstruments traded on WDM:

The WDM provides trading facilities for a variety of debt instruments including

government securities, Treasury Bills and bonds issued by Public Sector Undertakings (PSU)/

corporates/ banks like Floating Rate Bonds, Zero Coupon Bonds, Commercial Paper,

Certificate of Deposit, corporate debentures, State Government loans, SLR and Non-SLR

bonds issued by financial institutions, units of mutual Funds and securitized debt by banks,

financial institutions, corporate bodies, trusts and others.

iv) Investors in WDM

Large investors and a high average trade value characterize this segment. Till

recently, the market was purely an informal market with most of the trades directly

negotiated and struck between various participants. The commencement of this segment by

NSE has brought about transparency and efficiency to the debt market, along with effective

monitoring and surveillance to the market.

v) Regulatory Environment:

The listed corporate debt is under the regulations of SEBI. SEBI is involved whenever

there is any entity raising money from Indian individual investors through public issues/

private placement. SEBI has in fact laid down guidelines known as Disclosure and Investor

Protection (DIP) Guidelines 2000 to maintain transparency in the market and make it

efficient.

2.5.2 Limitations of Corporate bond market

The size and growth of private corporate debt market depends upon several factors,

including financing patterns of companies. Among market-based sources of financing, where

the equity markets have been largely developed, the corporate bond markets in most

emerging market economies (EMEs) have remained relatively underdeveloped. In India, the

corporate bond market has been in existence since long. However, despite a long history, the

size of the public issue segment of the corporate bond market in India has remained quite


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insignificant. The lack of market infrastructure and comprehensive regulatory framework

coupled with low issuance leading to low liquidity in the secondary market, narrow investor

base, inadequate credit assessment skills, high cost of issuance, lack of transparency in trades

and underdevelopment of securitization of products are some of the major factors that

hindered the growth of the private corporate debt market. This alternative sources of finance

need to be actively developed to support higher levels of investment and economic growth.

The development of corporate debt market has, therefore, become the chief concern of

regulators in developing countries. Many reforms have recently been made in the regulatory

and legal aspects of these markets leading to gearing up of the functioning in these markets.

2.5.3 Key Developments in Indias Corporate Bond Market

Several changes have helped improve transparency in the corporate bond market,

including better documentation requirements and improved credit rating. But it remains

undeveloped with small private placements norm. Four key developments have affected

corporate bond markets over the past decade:

dematerialization of holdings, as required by SEBI since 2002;

increased trading transparency from compulsory reporting of trades. There are

currently three trade reporting avenues for corporate bondsSEBI began publishing trading

details in January 2007;

documentation requirements for private placements have been enhanced.

linking local rating agencies (of which there are five offering bond ratings) to

international rating agencies (Table 1).

Table 1: Indian Credit Rating Agencies

Source: Agency Website


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The Report of the High Level Expert Committee on Corporate Bonds and

Securitizationcommissioned by the Union government and chaired by R. H. Patil in

2005made a number of recommendations for improving the corporate bond and

securitization markets. The government has examined its recommendations on stamp duties,

issuance procedures/disclosure requirements for public issues, and modifying the investment

rules relating to institutions. SEBI now has a rolling program to monitor implementation of

the key recommendations that are within its jurisdiction. In December 2007, SEBI relaxed the

requirement for bond issues to be rated by two agencies and the requirement that public

issues must be of investment grade. It also increased market transparency by requiring

transaction reports and publishing volume data. In addition, a number of minor enhancements

recommended in the report, including one for trading conventions, have been implemented.

2.5.4 Measures to improve Corporate Bond MarketThe Indian financial system is changing fast, marked by strong economic growth,

more robust markets, and considerably greater efficiency. But to add to its world-class equity

markets, and growing banking sector, the country needs to improve its bond markets. While

the government and corporate bond markets have grown in size, they remain illiquid. In order

to meet the needs of its firms and investors, the bond market must therefore evolve. This will

mean creating new market sectors such as exchange traded interest rate and foreign exchange

derivatives contracts. It will need a relaxation of exchange restrictions and an easing of

investment mandates on contractual savings institutions to attract a greater variety of

investors (including foreign) and to boost liquidity. Tax reforms, particularly stamp duties,

and a revamping of disclosure requirements for corporate public offers, could help develop

the corporate bond market. And streamlining the regulatory and supervisory structure of the

local currency bond market could substantially increase efficiency, spurring innovation,

economies of scale, liquidity and competition. Such reforms will help level the playing field

for investors.

3.0 Role of corporate bond market in a sustainable business

In this part, we will see how a vibrant corporate bond market can help in sustaining

business growth, alleviating the global and regional economic imbalance, and its role played

in economic development in regional as well as global platform.

The corporate bond market is considered to be a very crucial element in the economical

development of a country and is seen as a very significant factor of the economys financial


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system. It brings the participants of the market i.e. the borrowers as well as the lenders

together. These bonds allow investments to be made in assets which are attached to the low

risk quotient and also in acquiring funds in comparatively liquid markets. One can also see

that these markets are also essential for analysing the pricing of assets and the interest rates

by banks are usually determined in accordance with the market rate for bonds. When a fully

developed corporate bond market comes into existence, the market forces and the participants

have a greater chance of asserting themselves which in turn reduces the risks associated with

an economy. This can be seen as helping the economy in developing rather than moving

towards a crisis.

Until recent years, banks have been playing a key role in the early development of a

nation. However, the growth of the corporate bond market will take over this and this will

reduce the active involvement of banks in a countrys economy. This is sure to act as acatalyst in to the economys growth.

The existence of an active and vibrant corporate bond market would be very

beneficial in the long run. A fully active corporate bond market is a vital element of the entire

capital market in a countrys economy in the sense that it funds infrastructure projects.

Moreover, these markets ensure a great dispersion of risks in the economy.

A developed market provides a comparatively higher degree of protection in relation to the

banking system of a country in crisis situations as in the case when the bond market becomes

undersized. Thus, considering the above mentioned reasons, it has become very essential to

speed up the growth of the corporate bond market both regionally as well as globally.

For several decades, corporate looked to banks or equity markets for funding, but

never really considered issuing bonds. That situation is changing in recent times. The growth

of the corporate bond market as well as its size can be seen as depending on the fund raising

pattern of corporations. The issuance of bonds by corporate received its boost during the

1980s and 1990s, though it remained restricted in its extent of operation.

In the first phase of the countrys development, firms depend on funds generated from

internal sources. Later on, with the development of the economy, it becomes necessary to

procure external financing, mainly through bank loans. Subsequently, firms with a higher

standing started seeking direct financing in the form of corporate debt and equities which

were assisted by investment banks amongst others. Thus, there arose numerous financing


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mechanisms which tend to improve the capital structure of firms, increase competition

amongst firms and paves way for innovation.

It is important in regulating the market as well as promoting a credit culture and

laying down an observable standard for the participants in the market. It also ensures that

long term unsecured funding is provided for business development. Moreover, the growth of

the corporate bond market will enable companies to widen its source of financing and in turn

reduces bank dependency for funding. Thereby lowering the borrowing cost. Further, risks

are mitigated and a well channelled resource allocation also comes into place, thereby

providing for an alternative source of funding.

The lack of a well developed corporate bond market will worsen the imperfections

that are prevalent in the countrys economy. As was mentioned earlier, such a situation will

lead to borrowers turning towards foreign funding which will trigger off a crisis situation.

Hence, the need to develop an active and vibrant bond market was highly felt.

4.0 Major Findings and Conclusion

This paper has argued that the presence of a well-developed corporate bond market

has a strong positive effect on an economy. In the absence of a sufficiently large corporate

bond market free from excessive regulation, an overly large burden of corporate lending is

taken on by the banking system, typically with the blessing of a government in pursuit of

credit-allocation preferences. In such an environment the over-sized banking system becomes

fertile ground for crony capitalism, resulting in lax lending criteria and relaxed investment

standards by companies. Eventually, the resulting excessive borrowing leads to excess

productive capacity, which in turn lowers the return on invested capital, causing many of the

loans to go bad. Poor accounting transparency, regulatory imperfections, moral hazard

problems, and, in too many cases, government complicity and/or inaction tends to delay the

necessary corrective measures until a genuine crisis is in full bloom.

In contrast, when the relative sizes of the banking system and the corporate bond

market are more balanced, as would be the case when a well-developed corporate bond

market is present, market forces have a much greater opportunity to assert themselves,

thereby reducing systemic risk and the probability of a crisis. This is because such an


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environment is associated with greater accounting transparency, a large community of

professional financial analysts, respected rating agencies, a wide range of corporate debt

securities and derivatives demanding sophisticated credit analysis, an opportunity to make

private placements, and efficient procedures for corporate reorganization and liquidation. In

addition, the richness of available securities will tend to enhance economic welfare, and the

market forces at work on the wide array of bond prices are likely to have a strong spill-over

effect on the banking system as well.

References:

Bank for International Settlements. (2006). Developing Corporate Bond Markets in Asia.

BIS Papers,No. 26, February.

ICMA Centre. (2008), The Development of Indias Corporate Debt Market, The Business

for Financial Markets, University of London

IOSCO, (2002). The Development of Corporate Bond Markets in Emerging Market

Countries. May. Levine, Ross, and Sara, Zervos. 1998. Stock Markets, Banks, and

Economic Growth. AmericanEconomic Review, 88(3):537-58, June.

Luengnaruemitchai P. and Li Lian Ong, (2005). An Anatomy of Corporate Bond Markets:

Growing Pains and Knowledge Gains. IMF Working Paper, WP/05/152, July.Mihaljek, D., Scatigna, M. And Villar, A. (2002), Recent trends in Bond Markets, BIS

Papers chapters: Bank for International Settlements (ed.), The development of bond markets

in emerging economies, volume 11, pages 12-41.

Raju, M.T., Bhutani, Upasana. And Sahay, Anubhuti. (2004), Corporate Debt Market inIndia-Key Issues and some Policy Recommendations, SEBI, Working Paper No. 9, July

Report on Currency and Finance, 2005-06, RBI

Takagi, Shinji. (2001). Developing a Viable Corporate Bond Market under a Bank-

Dominated System Analytical Issues and Policy Implications. in Bond MarketDevelopment in Asia, Proceedings of Round Table on Capital Market Reforms in Asia, AsianDevelopment Bank Institute.

Documents

15 Role of Indian Corporate Bond Market in a Sustainable_Khushboo_FINC044