G-sec inclusion in global indices to boost corporate bond market: Sebi chief Buch
Sebi) chairperson Madhabi Puri Buch on Friday said the inclusion of Indian sovereign bonds in the global indices would not just help the government raise resources but also deepen the country’s corporate bond market.
Speaking at the industry body CII’s Global Economic Policy Forum event in the capital, Buch said: “This is hugely important for us as a country, not only because it will help the government raise resources, but once the Indian yield curve is established globally, on the back of that, the corporate bond market can also get a lot of traction, and a lot of interest from foreign investors.”
“And so we are hoping that down the line, it will be a case of my name is bond. Indian bond,” she added.
Finance minister Nirmala Sitharaman had in October said JPMorgan’s decision to include Indian government bonds in its widely tracked emerging market debt index could potentially lead to annual inflows of about $23 billion into the country.
JPMorgan will start adding the securities from June 28, 2024 and India will have a maximum weight of 10% on the index.
Same-day settlement
Buch said Sebi wants to introduce the same-day settlement of trades on the bourses--or the T-plus zero regime--by the end of this fiscal year.
The capital markets regulator also aims to move towards the instantaneous settlement regime within 12 months after that.
It has already shortened the settlement to the next day (T+1).
India’s potential
Buch said technology has enabled India to better harness its potential. “Many foreign investors asked us that it's been said for the longest time that India has great potential.
What makes you think that this time it's different? And my answer is simple. Technology,” she said.
The country always had the
