Sebi will soon come out with norms on corporate bonds to encourage firms to tap this route for raising funds, Chairman Ajay Tyagi said on Saturday.
The Sebi chairman said that the government's proposal to mandate listed companies to raise 25 per cent funds from corporate bonds was a good step and that detailed rules would be issued by September.
Finance Minister Arun Jaitley on Saturday asked markets
regulator Sebi to take more steps to deepen the corporate bond market and hoped that continuing uptrend in IPOs will help in meeting the disinvestment targets.
The board of Sebi apprised Jaitley about the market trends and recent initiatives taken by it.
Jaitley addressed the market regulator's board in a customary post-Budget exercise.
Tyagi said the finance minister was of the view that the regulator should focus on deepening the corporate bond market and more IPOs to help meet the disinvestment targets as well as monetisation of assets through InVITs.
"We have apprised the finance minister about what are our priorities and what we have been doing in the (past) one year," he said.
He added that Jaitley appreciated the initiatives taken by the markets
"I think more than Sebi, capital markets.
.. have been really doing well globally," Tyagi said.
The board also discussed the implementation of the Budget announcements related to Sebi.
It was wrong to say that long-term capital gains (LTCG) tax would have no impact on Indian markets but it would be minimal, said Tyagi, adding that global factors posed a bigger risk.