New Delhi, Feb 29: Finance Minister P Chidambram today said steps are being taken to create an exchange-traded market for corporate bonds. Both Bombay Stock Exchange and National Stock Exchange have created platorms for trading in corporate bonds, the Minister said while presenting the General Budget 2008-09 at the Lok Sabha.
He said measures will be taken to develop bonds, currency and derivatives markets that will include launching exchange-traded currency and interest rate futures and developing a transparent credit derivatives market with appropriate safeguards. Tradability of domestic convertible bonds will be enhanced that will enable investors to separate the embedded equity option from convertible bonds. He said the Permanent Account Number (PAN) is proposed to be extended to all transactions in the financial market subject to suitable threshold exemption limits. To provide seamlss national market for securities, the minister said, ''I propose to recquest to the Empowered Committee of state finance minister to work with the central government to create a truly pan Indian market for securities that will expand the market base and enhance the revenues of the state governments.