India Development News & Foreign Investment Opportunities

Budget: AA rated bonds to be allowed as collaterals

Trading platforms to be reviewed


Trading platforms to be reviewed



To deepen the Corporate tri-party repo market in Corporate Debt securities, the Government will work with regulators RBI/SEBI to enable stock exchanges to allow AA rated bonds as collaterals.

User-friendliness of trading platforms for corporate bonds will be reviewed, including issues arising-out of capping of ISINs, said the Finance Ministry.

These were announced after the Finance Minister tabled the 2019-20 Budget in parliament on 5 July.

Minister Nirmala Sitharaman said during Budget presentation: “Corporate Debt markets are crucial for the infrastructure sector.

“Though the number and value of bond issuances had gone up, there has been a dip in the last two years. The market is skewed in favour of private placement”.

Given the need to further deepen bond markets, the Minister has proposed measures in the budget.

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