What is the structure of the Corporate Debt Market in India?
The Indian Primary market in Corporate Debt is basically a private placement market with most of the corporate bond issues being privately placed among the wholesale investors i.e. the Banks, Financial Institutions, Mutual Funds, Large Corporates & other large investors. The proportion of public issues in the total quantum of debt capital issued annually has decreased in the last few years. Around 92% of the total funds mobilized through corporate debt securities in the Financial Year 2002 was through the private placement route. The Secondary Market for Corporate Debt can be accessed through the electronic order-matching platform offered by the Exchanges. BSE offers trading in Corporate Debt Securities through the automatic BOLT system of the Exchange. The Debt Instruments issued by Development Financial Institutions, Public Sector Units and the debentures and other debt securities issued by public limited companies are listed in the ‘F Group’ at BSE.
