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SEBI to consider mandating corporates to meet one-fourth financing from bond market

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Capital Market
Last Updated : Feb 01 2018 | 1:36 PM IST
The Finance Minister Shri Arun Jaitley has said that his Ministry will leverage the India Infrastructure Finance Corporation Limited (IIFCL) to help finance major infrastructure projects, including investments in educational and health infrastructure, on strategic and larger societal benefit considerations. Shri Jaitley said this while presenting the General Budget 2018-19 in Parliament here today.

The Finance Minister Shri Arun Jaitley further said that the Government and market regulators have taken necessary measures for development of monetizing vehicles like Infrastructure Investment Trust (InvIT) and Real Investment Trust (ReITs) in India. The Government would initiate monetizing select CPSE assets using InvITs from next year. He said Reserve Bank of India has issued guidelines to nudge Corporates access bond market. SEBI will also consider mandating, beginning with large Corporates, to meet about one-fourth of their financing needs from the bond market.

In India, most regulators permit bonds with the 'AA' rating only as eligible for investment. The Finance Minister Shri Arun Jaitley said it is now time to move from 'AA' to 'A' grade ratings. The government and concerned regulators will take necessary action for this. He also assured that the Government will take reform measures with respect to stamp duty regime on financial securities transactions in consultation with the states and make necessary amendments the Indian Stamp Act. The Government will establish a unified authority for regulating all financial services in IFSCs in India.

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First Published: Feb 01 2018 | 1:36 PM IST

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