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G-Sec listing on global indices soon: Senior Economic Advisor Sanjeev Sanyal

By on September 17, 2021 0
India’s sovereign bond plan in global bond indices aims not only to finance part of its high budget deficit in the aftermath of the Covid-19 outbreak, but to deepen the country’s bond market.

Preparatory work for the inclusion of certain categories of government securities in global bond indices is nearing completion and an announcement on this plan is expected this budget, senior economic adviser Sanjeev Sanyal said on Friday. The government and the central bank are working closely together to make this a reality, he said at an CII event.

Elsewhere, speaking at the same event, Anand Mohan Bajaj, additional secretary in the economic affairs department, said the government was working on setting up a backstop facility to deepen the corporate bond market. from the country. The plan was part of the last budget announcements.

“We are working on a very complete installation. This will certainly inspire the confidence of participants in the corporate bond market, ”Bajaj said.

As for the listing of G-sec on world indices, the government had not budgeted any amount to be raised through this channel for this fiscal year. However, all funds thus collected were to proportionally reduce government borrowing in the gross domestic market by the budgeted Rs 12 lakh crore.

India’s sovereign bond plan in global bond indices aims not only to finance part of its high budget deficit in the aftermath of the Covid-19 outbreak, but to deepen the country’s bond market.

“If we are to prepare for a period when liquidity is going to be slowly withdrawn globally, we want other sources of liquidity to open up for us. Obviously, this is good for the market in general. As the government is the biggest borrower in the system, we obviously want there to be capital tools available that will continue to support our borrowing programs, ”the senior economic adviser said.

Such a move would potentially attract higher foreign flows, as many foreign funds track global indices.

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