Budget 2018: Deepening corporate bond markets, says CRISIL CEO Ashu Suyash

Three Budget announcements indicate the government’s determination to deepen India’s corporate bond market: One, asking large  corporations to meet 25 per cent of funding needs through this market; two, persuading regulatory recognition for ‘A’ rating category bond investments; and three, pushing for uniform stamp duty on bond issuances across the country. 

These initiatives will significantly expand the role played by the corporate bond markets in financing India’s growth. 

This step has been long due. However, in the short term, a slower path towards fiscal consolidation could lead to higher interest rates, thus reducing the relative competitiveness of bonds versus bank loans.

The Budget