Author:
NADAF ALLAUDDIN,Dr.Shivappa
Abstract
The corporate bond market helps the companies raise long-term finance, which is essential external source of capital. The Indian corporate bond market is still in its early stages of development, and as a result, it lacks the depth found in more mature markets. This paper aims to understand the factors that have limited the development of the corporate bond market in India. In addition, the paper examines the requirements for corporate bond market development, where the government bond market is doing quite well. This paper is designed as a literature review previously attempted to elaborate on the current state of corporate bond markets. The research is limited to previous studies and secondary data. Based on the literature review from previous studies and recently available market statistics, the main factors that constrain the development of Indian corporate bond markets are performance metrics, corporate governance, opacity to information and credit rating mechanism, financial infrastructure, and cost associated with issuance influence the corporate bond markets. The Indian government and Reserve bank have simultaneously tried to develop the corporate bond market.
Publisher
Maharani Lakshmi Ammanni College for Women
Reference17 articles.
1. ASIA BOND MONITOR. (2022). Emerging East Asian Local Currency Bond Markets: A Regional Update.
2. Bhattacharyay, B. N. (2011). Bond Market Development in Asia: An Empirical Analysis of Major Determinants. https://doi.org/10.1007/978-1-349-67278-3_116
3. Biais, B., & Green, R. (2019). The microstructure of the bond market in the 20th century. Review of Economic Dynamics, 33, 250–271. https://doi.org/10.1016/j.red.2019.01.003
4. Braun, M., & Briones, I. (2006). The Development of Bond Markets around the World, (February).
5. Burger, J. D., & Warnock, F. E. (2006). Local currency bond markets. IMF Staff Papers, 53(SPEC. ISS.), 133–146. https://doi.org/10.2139/ssrn.930072