The Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi has said that non-performing assets (NPAs) crisis in the banking sector provides an immense opportunity for development of bond market. He also invited all stakeholders to come forward with suggestions to further boost the bond market ecosystem.
The chairman further highlighted that rating agencies play a significant role as gatekeepers in maintaining trust of investors in bond market. Besides, he said that Sebi has taken a number of steps to rationalise their governing structure and for close monitoring of ratings and it would consider further necessary changes in norms for them in consultation with stakeholders.
Besides, Ajay Tyagi noted that the corporate bond market could get a boost if sectoral regulators of pension funds, provident funds and insurance firms could allow their regulated entities higher exposure in the segment. He further said that the regulator is examining enhancing the framework for 'on tap' bond issuances by corporates.