Impact of Debt Market India-Policies & Procedures-An Evidential Study
Author : P Harika and Dr. Sindhu
Abstract :
The financial market in India is significantly large and encompasses a host of instruments and securities in which one can invest. The market can broadly be classified into Money Market & Capital Market, with equity and debt market being the primary constituents of the latter. In order to raise the massive sums needed to support prospective companies, growth in the long-term loan market is essential. The Indian market for long-term business debt is unclear. Financial institutions, the stock market, and outside loans have always been relied upon most frequently. While the equity market includes volatile and relatively riskier securities that do not have guaranteed returns, the debt market has fixed-income securities that deliver the promised interest rates, at significantly lower risk levels. Possible obstacles to the growth of a thriving corporate debt market include a sizable government deficit, expensive interest rates, an undeveloped market infrastructure, a lack of openness, and excessive regulation limitations on the investment of financial institutions. In this article, we provide an overview of the relevant literature, discuss what needs to be done to reform the debt market, and explain how the Indian economy can benefit from a reformed debt market.
Keywords :
Debt market, securities, market risk, investors, bond, interest rate
