Gold spot exchange will follow bullion exchange in Gift City
There is a lot of work that needs to be done on the bond markets in India while the Government as well as stakeholders of the financial markets are constantly deliberating steps to develop the Indian bond market, according to Anand Mohan Bajaj, Additional Secretary (FM), Department of Economic Affairs.
“We need to do a lot of work on the bond market. The Government and all the major participants are continuously in dialogue to do more and more to develop our bond market,” he told the 12th CII Financial Markets Summit on 17 Sept 2021.
Bajaj also iterated that the Government is considering a backstop facility for Corporate Bonds which would also be available during non-stress times.
“If Indian financial markets had to be better facilitators, market makers and partners in economic development, they should have the basic characteristics like depth, ease of access, efficiency and stability, less volatility to market shocks, etc.,” said Bajaj.
The Additional Secretary was optimistic on the Indian financial markets and stated, “The financial markets in India have performed well beyond the expectations of market participants. Continuous functioning of Financial Markets even during COVID is a testimony of technology and resilience.”
On the various efforts being taken by the Government to improve the efficiency of the financial markets, Bajaj explained, “Rationalized single securities market code, as announced during the Budget 2021-22, would be forward looking and we need to have the best securities law framework. The Government is working on providing the best securities law framework in India, to enhance efficiency and provide lubrication to the functioning of the markets.”
On the credit default swaps, he elaborated, “The credit default swap is a very important product and RBI and the Government have now reached a stage where credit derivatives may be used to reduce the capital required and to support the credit risk exposures, which will certainly give a push to the functioning and to the depth and liquidity of the bond market.”
He also touched on various other measures that have been taken by the Government, such as the RFQ mechanism, the IFSC GIFT city, the increase in the FPI investment limit in corporate bond, the new FPI regulation and the investor’s charter with focus on increasing the trust and confidence of investors in the financial markets.
Bajaj also pointed out, “The IFSC is the unified regulator which has the powers of the RBI, SEBI, IRDAI and PFRDA for regulating the financial products, financial institutions and financial services in the IFSC.”
“The IFSC authority is working in collaboration with the GIFT City to establish an International Bullion Exchange. Very soon, the International Bullion Exchange that is being worked upon will be functional, followed by the Gold spot exchange,” he announced at the summit. #investment #bonds #banking /fiinews.com
