<p>“With bank finance drying up for long-term infrastructure projects in view of asset liability problems faced by the banking system, the need for further development of a deep and vibrant corporate bond market can hardly be over-emphasised,” it said. In current fiscal, till November, corporate bonds worth Rs 147,400 crore was privately placed on the Bombay Stock Exchange and the National Stock Exchange.<br /><br />Apart from creating a comprehensive database for corporate bonds, it has suggested including lower and uniform stamp duties across states for these bonds.<br /><br />Non-banking finance companies are main issuers of corporate bonds. “The corporate bond market... is only about 14 per cent of the total bond market,” it added.<br /><br />Pre-dominance of bank loans, crowding out by government bonds, limited participation of FIIs and lack of investor confidence are among reasons for the languishing bond market.<br />“The corporate bond market has languished both in terms of market participation and structure,” it noted.</p>
<p>“With bank finance drying up for long-term infrastructure projects in view of asset liability problems faced by the banking system, the need for further development of a deep and vibrant corporate bond market can hardly be over-emphasised,” it said. In current fiscal, till November, corporate bonds worth Rs 147,400 crore was privately placed on the Bombay Stock Exchange and the National Stock Exchange.<br /><br />Apart from creating a comprehensive database for corporate bonds, it has suggested including lower and uniform stamp duties across states for these bonds.<br /><br />Non-banking finance companies are main issuers of corporate bonds. “The corporate bond market... is only about 14 per cent of the total bond market,” it added.<br /><br />Pre-dominance of bank loans, crowding out by government bonds, limited participation of FIIs and lack of investor confidence are among reasons for the languishing bond market.<br />“The corporate bond market has languished both in terms of market participation and structure,” it noted.</p>