The
debt markets in advanced countries are significantly
larger and deeper than equity markets. But in India,
the trend is just the opposite. The development of debt
market in India has not been as remarkable as in the
equity market. However, the debt markets in India have
undergone considerable change in the last few years.
Characterised by regulated interest rates, limited players
and lack of trading earlier, the markets have become
more integrated and less regulated.
The debt
market in India can be divided into two categories,
viz., Government securities market consisting of Central
Govt and State Govt securities; and Bond market consisting
of FI bonds, PSU bonds and Corporate bonds/debentures.
The Government Securities segment is the most dominant
category in the debt market. |
