( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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FLEDGLING CORPORATE BOND MARKET AND THE LIQUIDITY PATTERN

    3 Author(s):  DEEPSHIKHA YADAV , NAVIN KUMAR , ANURADHAGOEL

Vol -  6, Issue- 1 ,         Page(s) : 102 - 118  (2015 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

The lack of depth and liquidity in corporate bond market can be attributed to structural weaknesses such as dilatory and ineffective legal regime; ceiling imposed on domestic and foreign institutional investors and cumbersome compliance procedures. The total value of outstanding corporate bonds issued by Indian firms stand at around 200 billion US $. FIMMDA is the most preferred platform for reporting of trades. Corporate bond issuances by Indian companies and turnover in the India market is not only low, they are far below the turnover seen in equities (only cash segment) on NSE. Most of the trading is concentrated in public sector bonds issued by infrastructure sector companies and financial institution. The market for bonds rated BBB and below is almost non-existent and majority of trading is concentrated in AAA rated bonds.

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