Insurance funds should invest in low-rated instruments: SBI chairman

To make the debt capital market more vibrant, the long-term liabilities with insurance and pension sector need to be channeled effectively by allowing them to invest in low-rated instruments rather than just AAA and AA papers, said State Bank of India (SBI) Chairman Dinesh Kumar Khara.
 

Speaking at the CII Partnership Summit, Khara said, as of now such funds are only into AAA and AA papers. “But I think these funds can be made available to low grade papers also. This is perhaps the needs of the hour if we want to create infrastructure, we have to ensure this money