Securities market regulator Sebi might mandate large corporates to meet about one-fourth of their financing needs through the bond market.
"Reserve Bank of India has issued guidelines to nudge corporates access bond market," Finance Minister Arun Jaitley said in his Budget 2018-19 speech on Thursday.
"SEBI will also consider mandating, beginning with large corporates, to meet about one-fourth of their financing needs from the bond market."
According to Jaitley, corporate bonds rated 'A' grade would be permitted as eligible for investment.
"Corporate bonds rated 'BBB' or equivalent are investment grade. In India, most regulators permit bonds with the 'AA' rating only as eligible for investment," Jaitley said.
"It is now time to move from 'AA' to 'A' grade ratings. The government and concerned regulators will take necessary action."
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--IANS
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