Investors are increasingly favoring RBI's Floating Rate Bonds, a secure government-backed debt instrument, over traditional bank deposits and small-savings schemes. Offering an 8.05% return linked to the National Savings Certificate rate plus 35 basis points, these seven-year bonds provide a higher yield and hedge against rising interest rates.
The Securities and Exchange Board of India is simplifying corporate disclosure rules. A review of Listing Obligations and Disclosure Requirements is underway. Sebi is also overhauling settlement regulations and other norms for stockbrokers and mutual funds. A closing-auction mechanism for equity markets is nearing implementation. Efforts are also focused on easing fundraising processes for companies.
