RBI constitutes working group for development of corporate bond mkt

Mumbai, Apr 18 (UNI) Reserve Bank of India (RBI) today proposed constituting a working group to suggest a roadmap for implementation for recommendations of the R H Patil Committee on developing corporate bond market.

The committee's recommendations include enhancing the issuer as well as investor base of corporate bonds, simplificaiton of listing and disclosure norms, rationalisation of stamp duty and withholding tax and consolidation of debt.

The committee had also suggested improving trading system through introduction of an electronic order matching system, efficient clearing and settlement systems, a comprehensive reporting mechanism, developing market conventions and self- regulation and development of the securitised debt market.

In this regard, consultations will be held with the market regulator SEBI and insurance regulator IRDA, RBI said in its annual credit policy for 2006-07.

Pursuant to the announcement made in the Union Budget, 2005-06, a high level expert committee on corporate bonds and securitisation was appointed to examine legal, regulatory, tax and market design issues in the development of the corporate bond market, the policy statement said.

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