| Thorat was speaking at an international conference on global developments in accounting standards and corporate disclosures organised by Confederation of Indian Industry (CII). |
| She said the Indian bank would like companies to disclose the mark to market positions of their balance sheet maintained in the nature of forward contracts and outstanding derivative positions , interest rate options and interest rate swaps and currency. |
| This would be beneficial not only to the banks in assessing their total risk but also could be a useful indicator for the stakeholders of the company. |
| Thorat said to promote the securitisation of corporate debt papers, a proper legal framework should be worked out for validity and acceptance of these instruments widely in the market. Securitisation of corporate debt raises queries about the origin of the debt, rating of the paper and ownership of the recovery dues, said a market dealer. |
| At present, the technical committee on government securities has set up a sub-committee on the corporate debt. |
| This sub committee is understood to have suggested a mandatory listing and rating of the mortgage based securitisation papers. However, what is keeping back is the proper disclosure of the nature of debt. |
| Meanwhile, the RBI in its report on foreign exchange liabilities had mentioned corporate sector debt forms one of the major aspects of debt the country's liability. There have been efforts made to collate the private sector data while compiling the debt of the country, said the report. |
| The forward pemia on the dollar rupee exchange rate in 2003-04 had gone into deep discounts as the entire corporate sector had kept its import positions uncovered owing a rising rupee dollar rate. |
| This was repeatedly adopted as a trading strategy even after the RBI governor in his October 2003 credit policy urged the corporate sector to hedge their open positions to avoid being caught in unfavourable currency movements. |
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