Retail debt market will take off soon: SEBI chief March 7, 2009
Posted by dhirendra08 in Attractive Proportion for Investors, Beginning od Debt Market, Good Response, Important Points, Issuing Large Debt, Lage Issues, Mobilize Funds, Money into Debt, Planning Debt.Tags: Annual Return, C B Bhave, Debt Market, etail Investor, Financial Markets, Funds, Future Innovations, Green-shoe Option, India, International Bar Association, Issues, Keynote Address, Market Losses, Money, Non-over the counter, Points, Retail Participation, Scope, Sebi Chief, Tata Capital NCD
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Good morning friends. The beginning of a debt market in India with enhanced retail participation could be just around the corner. Sebi chief C B Bhave on Friday said that there were signs that some corporates were intending to tap the debt market with large-size issues.
“We do not have a non-OTC (over the counter) debt market now. There are some signs that people will be issuing large debt,’’ Bhave said. Without naming the recently successful Tata Capital NCD issue, Bhave said two important points have emerged out of it. For one, retail investors do have money and preference to put that money into debt. And secondly, if a reliable issuer comes to the market to mobilize funds, it will get a good response.
“We believe that a few more issuers are planning (debt). So there is scope that we might see the beginning of the debt market,’’ Bhave said. The Sebi chairman was responding to questions after delivering the keynote address at a conference organised by the International Bar Association.
In Tata Capital’s NCD issue , the total application money was over Rs 3,000 crore while the actual issue size was Rs 500 crore with a green-shoe option of another Rs 1,000 crore. The company offered an annual return of 12% which, other than the Tata brand name , was an attractive proposition for investors well aware of the market losses.
Bhave also hinted that future innovations in the financial markets will be tougher to come by. -economictimes
