A market for loans

Secondary market will need to cross many hurdles

Last week, a task force set up by the Reserve Bank of India to examine the possibilities of a secondary market for corporate loans in India submitted its report. The task force, which was led by Canara Bank Chairman T N Manoharan, suggested creating a self-regulatory body to manage the secondary market. This body would standardise the paperwork associated with loans, making them easier to trade; maintain the standards and examine documentation; maintain a central registry, and so on. Aside from the creation of this quasi-regulator, the committee also suggested that existing requirements be changed and the secondary market for