Indian defaults spark rules that drag bond sales to 13-year low
SECTIONS
Last Updated: Apr 19, 2021, 07:20 AM IST
Share
Synopsis
Offerings of rupee notes have fallen to 34.4 billion rupees ($463 million) this month, the slowest start to a financial year since 2008.
Bloomberg
By Divya Patil
Rising defaults have prompted India to tighten oversight of corporate bond sales, causing issuance to slump in a blow to a long-sought goal of expanding the market.
Offerings of rupee notes have fallen to 34.4 billion rupees ($463 million) this month, the slowest start to a financial year since 2008. That’s due in part to rules that took effect April 1 strengthening the role of trustees for secured bonds backed by assets. Such offerings have made up about 60% of India’s total domestic issuance in the last 10 years.