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Regulatory Framework

Fair and adequate disclosure of information about an issuer and the securities that it is offering is vital to a functioning of a public market for bonds or equities.

Securitization

Securitization can contribute to the development of corporate bond
markets by overcoming the problems of the small size and low credit quality of most emerging market issuers-problems of the emerging corporate bond markets. By participating in a securitization program, or by collateralizing their future-receivable cash flows, small and medium enterprises will be able to tap capital markets.

Conclusion

To be a truly global economy development of financial markets is utmost necessary and financial market development without the development of debt market is almost impossible. This is perhaps the right time due to the various factors mentioned to put in place a conducive atmosphere for the development of debt market and particularly its High-yield segment so that the growing small and medium enterprises segment can take leverage of the situation and contribute to the development of global Indian economy.

Concluded.

* Contributed by: -
Jayanta Das & Kartavya Soni,
ICFAI Business School, Hyderabad.