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    imsajit
    This document discusses the development of corporate debt markets in India. It identifies several issues that have hindered the growth of an efficient corporate bond market, including a lack of liquidity, limited investor base, high costs for listed companies, and incomplete access to information. The author conducted research on these problems and made recommendations to address structural gaps. Their suggestions focused on improving payment systems, regulatory changes, and increasing transparency to help develop India's corporate debt market into a more vibrant and liquid marketplace.

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    Synopsis

    Uploaded by

    imsajit
    19 views3 pages
    This document discusses the development of corporate debt markets in India. It identifies several issues that have hindered the growth of an efficient corporate bond market, including a lack of liquidity, limited investor base, high costs for listed companies, and incomplete access to information. The author conducted research on these problems and made recommendations to address structural gaps. Their suggestions focused on improving payment systems, regulatory changes, and increasing transparency to help develop India's corporate debt market into a more vibrant and liquid marketplace.

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    This document discusses the development of corporate debt markets in India. It identifies several issues that have hindered the growth of an efficient corporate bond market, including a lack of liquidity, limited investor base, high costs for listed companies, and incomplete access to information. The author conducted research on these problems and made recommendations to address structural gaps. Their suggestions focused on improving payment systems, regulatory changes, and increasing transparency to help develop India's corporate debt market into a more vibrant and liquid marketplace.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views3 pages

    Synopsis

    Uploaded by

    imsajit
    This document discusses the development of corporate debt markets in India. It identifies several issues that have hindered the growth of an efficient corporate bond market, including a lack of liquidity, limited investor base, high costs for listed companies, and incomplete access to information. The author conducted research on these problems and made recommendations to address structural gaps. Their suggestions focused on improving payment systems, regulatory changes, and increasing transparency to help develop India's corporate debt market into a more vibrant and liquid marketplace.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    1.

    Abstract
    Traditionally, firms in India have shown a low preference towards debt financing, despite its advantages. Using panel data from 450 firms during 1992-93 and 2003-04, we attempt to identify factors which could explain the pattern of financing of manufacturing firms in India and the key determinants of their debt structure. We examine the roles of age of the firm, long term borrowing and net sales in affecting its debt structure.

    2. Introduction
    The debt market is much more popular than the equity markets in most parts of the world. In India the reverse has been true. This has been due to the dominance of the government securities in the debt market and that too, a market where government was borrowing at pre-announced coupon rates from basically a captive group of investors, such as banks. Thus there existed a passive internal debt management policy. This, coupled with automatic monetisation of fiscal deficit prevented a deep and vibrant government securities market. Traditionally, the capital markets in India are more synonymous with the equity markets both on account of the common investors preferences and the huge capital gains it offered no matter what the risks involved are. The investors preference for debt market, on the other hand, has been relatively a recent phenomenon an outcome of the shift in the economic policy, whereby the market forces have been accorded a greater leeway in influencing the resource allocation.

    3. Motivation
    Regulators, policy makers, academicians and practitioners would anytime desire to have complete markets as they provide investors with opportunities to shift their investment across instruments over time depending on expectations and changes. In India for past several years, reforms have been initiated to develop debt market. Despite all this, Corporate debt market in India still lacks depth and breadth. Therefore, the present study has been taken up to review the past developments, to identify weakness/gaps and suggest suitable measures to develop the market.

    4. Objective(s) and Scope


    There are several empirical /theoretical studies conducted out to bring developments and status of Indian Corporate Debt Market and to make suggestions to convert it into vibrant market. This paper has some of the following objectives: Review regulatory and market related developments for the past years in India. Identify structural gaps or deficiency in the Indian Debt Market. States recent regulatory changes and their impact on the market. Make suggestions /recommendations to develop Indian Corporate Debt market as one of most vibrant / liquid transparent and efficient market places.

    5. Description of the research work


    (a) Research problems Poor payment system. Inadequate liquidity Investor base Regulatory arbitrage ( additional costs on listed companies) Debt Versus equity : Cost and risks Incomplete access to information Interest rate structure

    (b) Summery and recommendations India rightly considers that it has been successful in developing world-class Infrastructures to support its capital market. Regulatory agencies also maintain that they are acting on a number of fronts to address some of the barriers that have been identified with regard to the development of a corporate bond market. We agree with both of these assessments. Indian regulators, particularly the RBI, are mindful of the need to preserve financial order, and consider that this has priority over the development of the corporate bond market. It may be, therefore, that reform in respect of the main barriers described above is not as rapid as many market participants may wish.

    Research Methodology In this project descriptive research methodologies will be used.

    Data collection Primary data will be collected through a questionnaire. Secondary data will be collected from websites of different organizations. Data Analysis Data analysis will be conducted through theoretical study at the first stage. Practical study will undertaken through

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