Government Approves the Khan Committee Report to Revitalize the Corporate Bond Market
BENGALURU: Previously, the HR Khan committee had presented a set of recommendations focused on intensifying the entire corporate bond market. The initiative will allow banks to utilize corporate bonds as a medium of assurance to borrow funds through RBI’s overnight repurchase agreement. Now, approving the recommendations, Finance Minister Arun Jaitley stated that the government will effectively implement the same on the corporate bond market in the upcoming months. Jaitley further added that implementation of few recommendations will require incorporating some legislative changes and the government is trying to amend the same.
Arun Jaitley was addressing the bond market at the BRICS summit which was attended by finance representatives from Brazil, Russia, India, China and South Africa. The summit was organized by the CII (Confederation of Indian Industry) and the Ministry of Finance. Explaining further on the current status of implementation, Jaitley said, “A few of the recommendations have already been implemented. All the (other) recommendations are under considerations...most recommendations will be implemented in the next six-eight months".
Furthermore, Jaitley also commented that India’s current annual economic growth rate of 7.5 percent is unsatisfactory and the government aspires to elevate the same. In spite of experiencing a considerable amount of progress in the infrastructure arena from the past few years, the overall Indian infrastructure includes numerous faults. When compared to other sectors, Jaitley claims that the country is effectively working towards the development of smart cities, airports, ports, railways and affordable housing.
Intensifying the bond market has always been on the Finance Minister’s implementation list, the Ministry of Finance will also focus on simplifying the procedures related to bond investing.
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