2016: A Quantum Leap for Indian Corporate Bond Markets

Abstract

India's focus on developing an efficient corporate bond market has been continuous and consistent ever since the Asian Crisis of 1997-99. R.H. Patil's High Level Committee report in 2005 set the ball rolling and more recently, H.R Khan's 7i Framework for development of the corporate bond markets in India brought out the important areas that required attention from policymakers and regulators to give the market the push it needs. After showing small but steady growth over the last decade, 2016 was a momentous year for the corporate bond markets in India. With a slew of regulatory changes, focus on improving the infrastructure, the faltering state of the Indian Banking system and declining interest rates have ensured that the corporate bond markets in India. With a slew of regulatory changes, focus on improving the infrastructure, the faltering state of the Indian Banking system and declining interest rates have ensured that the corporate bond markets have reached a much required turning point. This paper explores the leaps made by the market in calendar year 2016 as an event study based on news analytics pertaining to the corporate bond market in India. The researchers have used the 7i Framework as a base for classifying the information and to arrive at those areas that may still require some attention from policymakers in the time to come.