The following developments and readings may be of interest: 1. Sahara: Public Offering vs. Private Placement We have been following the Sahara case as it involves the crucial question of what differentiates a public offering from a private placement of securities under Indian company law and securities regulation. Newspaper reports (here, here and here) indicate that the Supreme Court has now...
Infrastructure Development Fund
The Ministry of Finance has issued a press release that paves the way for setting up “Infrastructure Debt Funds (IDFs) in order to accelerate and enhance the flow of long term debt in infrastructure projects for funding the government’s ambitious programme of infrastructure development.” IDFs are envisaged to be suitable vehicles that enable raising debt to finance infrastructure projects...
RBI’s Draft Guidelines on CDS
Following its draft report released in August 2010, the Reserve Bank of India (RBI) has issued draft guidelines on credit default swaps (CDSs) for corporate bonds. One of the principal objectives of this effort is to boost the corporate bond market. As RBI notes: The objective of introducing Credit Default Swaps (CDS) on corporate bonds is to provide market participants a tool to transfer and...
RBI Proposes Credit Default Swaps on Corporate Bonds
The Reserve Bank of India (RBI) has issued a draft report that proposes the introduction of credit default swaps (CDS) for corporate bonds. Comments are due on the proposal by October 4, 2010. The move to create a market for CDS in India has been delayed for the last few years due to a lack of adequate risk management systems and lessons learned from the financial crisis (where CDS is alleged to...
Corporate Bonds: Clearing and Settlement
SEBI last week issued a circular prescribing the procedure for clearing and settlement of corporate bonds. This is an important step in the development of a robust corporate bond market that has not yet fully evolved in India, and appears to have been welcomed by the markets.
The SEBI Updates blog has a post describing the history of regulation of the Indian corporate bond markets.
Recent Comments