Though India has a very advanced G-Secs (government securities) market, the corporate bond market is relatively under-developed.
Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing business.
Chidambaram said that the Government would “enable smoother clearing and settlement for international investors looking to invest in Indian bonds''.
He stated that steps would be taken to strengthen the currency derivatives market enabling Indian companies to fully hedge against foreign currency risks.
