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A study of Indian Corporate Bond Market


Affiliations
1 D. Y. Patil School of Management, Charholi, Lohegaon, Pune, India
 

Capital Markets are the important source of fund generation for Corporate. Various instruments have been used by the corporation for the same, most popular of these being Equity Public Issues, Rights Issue, Qualified Institutional Placements, Corporate Bonds Public Issues and Private placement of Corporate Bonds. But the biggest change in traditional trends of fund generation can be seen with the introduction of Non-convertible Debentures since 2008. The public issues of NCD's have clearly replaced Public issues of Equity. Further, it has been a significant contributor in overall fund generation as well, increasing the overall resources mobilized by the corporation. The Introduction of Non-Convertible Debentures in the Capital market have been a significant reform, which has shown its effects in the last few years. The Instrument has become the most favorite instrument of the Corporation for Fund Generation through Public Issues replacing Equity issues. Equity was the most preferred source till 2003-2004 with nearly 25% contribution in overall Fund Generation. But since 2008, after the introduction of NCD's there has been a gradual replacement and in the year 2013-14 the NCD's have contributed nearly 25% in overall Fund generation with Equity is contributing just 2% including Private Issues. When it comes to fund generation only through Public Issues, Corporate Bonds have crossed 90% out of Total funds generated through Public Issues.

Keywords

Corporate Bond, Non-Convertible Debentures, Primary Market, Public Issue.
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  • A study of Indian Corporate Bond Market

Abstract Views: 329  |  PDF Views: 106

Authors

E. B. Khedkar
D. Y. Patil School of Management, Charholi, Lohegaon, Pune, India

Abstract


Capital Markets are the important source of fund generation for Corporate. Various instruments have been used by the corporation for the same, most popular of these being Equity Public Issues, Rights Issue, Qualified Institutional Placements, Corporate Bonds Public Issues and Private placement of Corporate Bonds. But the biggest change in traditional trends of fund generation can be seen with the introduction of Non-convertible Debentures since 2008. The public issues of NCD's have clearly replaced Public issues of Equity. Further, it has been a significant contributor in overall fund generation as well, increasing the overall resources mobilized by the corporation. The Introduction of Non-Convertible Debentures in the Capital market have been a significant reform, which has shown its effects in the last few years. The Instrument has become the most favorite instrument of the Corporation for Fund Generation through Public Issues replacing Equity issues. Equity was the most preferred source till 2003-2004 with nearly 25% contribution in overall Fund Generation. But since 2008, after the introduction of NCD's there has been a gradual replacement and in the year 2013-14 the NCD's have contributed nearly 25% in overall Fund generation with Equity is contributing just 2% including Private Issues. When it comes to fund generation only through Public Issues, Corporate Bonds have crossed 90% out of Total funds generated through Public Issues.

Keywords


Corporate Bond, Non-Convertible Debentures, Primary Market, Public Issue.

References





DOI: https://doi.org/10.21904/weken%2F2016%2Fv1%2Fi3%2F103456