Government Debt Securities

The government estimates its debt, including external borrowing, valued at current exchange rate and public account and other liabilities will increase to Rs 185 lakh crore, or 56.8 per cent of the GDP, during the current fiscal year. The total debt stood at Rs 171.78 lakh crore, or 58.2 per cent of the gross domestic product (GDP), at the end of March 2024, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha on Monday. As per the International Monetary Fund, World Economic Outlook, April 2024, India's Gross Domestic Product at current prices has already reached USD 3.57 trillion in 2023-24, he said. Replying to another question, Chaudhary said the growth rate of the private final consumption expenditure (PFCE) at constant prices in 2022-23 and 2023-24 is 6.8 per cent and 4 per cent, respectively, he said, quoting provisional GDP estimates for 2023-24 released by the National Statistical Office. The growth rate of PFCE at current prices in 2022-2

Easing G-sec yields put long-duration, gilt funds on winning track

The pullback has left the 10-year yield around 7.20%, which traders say is attractive

The country's total debt, or the total outstanding bonds which are being traded in the market, rose to USD 2.47 trillion (Rs 205 lakh crore) in the September quarter, according to a report. The total debt amount in the March quarter of the previous fiscal was USD 2.34 trillion (Rs 200 lakh crore). The central government's debt stood at USD 1.34 trillion, or Rs 161.1 lakh crore, in the September quarter, up from USD 1.06 trillion, or Rs 150.4 lakh crore, in the March quarter, Vishal Goenka, Co-Founder of Indiabonds.com, said, quoting data provided by the Reserve bank of India. Indiabonds.com, which was launched in 2021, is a Sebi-registered online bond platform that provides investing solutions. The report is a collation of data from the RBI, Clearing Corporation of India, and the Securities and Exchange Board of India. At Rs 161.1 lakh crore, the central government's debt constitutes the highest 46.04 per cent share of the total amount. State governments' debt share was 24.4 per

To deepen the bond market, Sebi is looking to introduce the concept of 'fast track' public issuance for debt securities and further reduce the face value of debt securities, including non-convertible debentures, issued on a private placement basis to Rs 10,000 from Rs 1 lakh at present. If implemented, the move would also promote ease of doing business. "The main intention of a fast track public issuance of debt securities is to facilitate frequent issuers with a consistent track record, to make public issues of debt securities with reduced time, cost and effort," Sebi said in its consultation paper. To further enhance the participation of the non-institutional investors in the corporate bond market, Sebi has "proposed to permit issuers to launch NCDs (non-convertible debentures) or NCRPS (non-convertible redeemable preference shares) with the face value of Rs 10,000". However, in such cases, the issuer should appoint a merchant banker who would carry out due diligence for issuance

The quick turn in sentiment came after the benchmark 10-year yield rose to its highest since March, accentuated by a Reserve Bank of India policy review held on August 6

Under the new disclosure framework, Sebi said it has widened the definition of issuers, revised timelines for submission of annual and half-yearly financial results

It comes after government securities evoked lesser subscriptions from foreign investors in the last two auctions