Indian debt market --finally relaxing norms.

A sigh of relief for Indian CFO's since SEBI declared "no more stringent requirement for disclosures to enter into Indian debt market." For the starters it is to be stated that Indian capital market is predominantly captured by equities market , though majority of Indian citizens want to invest in debt market. Its no denying that debt market is still it in its infancy stage compared to European market and even US market which has been severely affected by Sarbanes-Oxley Act 2002. With virtually no liquidity in the debt market India, firms have no choice but to expose themselves foreign ECB (External commercial borrowings). Such dismal situation was largely present because of tough regulatory mechanism for discloser which did not go down with Indian firms. That was also the probable reason why throughout the year Indian debt market floated with only govt securities and govt bonds.

But this is set to change when sebi will clear few hurdles for companies, ,which has already gone through disclosed information about themselves during their IPO's, to proceed with their debenture issues . For the rest which is still not in equity market they will need to make disclosures. There is still long way to go and lot many committees like RH patil committees needs to be set up and help SEBI proceed in the right direction.