Delay in action likely to freeze corporate bond market, say mutual funds

The mutual fund industry wants regulatory intervention to normalise disruption in the corporate bond market. 

While investors were already nervous with some schemes’ exposure to IL&FS papers, the recent sharp spike in yields of some highly-rated papers has added to their worries.  

Aashish Somaiyaa, chief executive officer of Motilal Oswal MF, added that an intervention is needed on an urgent basis. “We are already seeing the spillover effect emerging from the IL&FS issue. It is quite unfortunate that an entity amenable to credible institutional intervention is being allowed to freeze up the entire fixed income markets. A credible measure should