Debt Market: The Regulatory Framework DEBT MARKET: THE REGULATORY FRAMEWORK

RESEARCH AREA
The Research area of this project is to make analytical study of Regulatory Framework of the Debt Market in India.

RATIONALE OF THE STUDY

The Rationale of the study is to analyse an overview of the Regulatory Framework of Debt Market in India. Further, this study would identify the associated structural problems in the segment of the structure and segment of corporate debt market in India along with the current policies initiated by the Securities Exchange Board of India (SEBI).

OBJECTIVES OF THE STUDY

The rationale behind the study of Regulatory Framework of Debt Market in India is as follows: y y y y y Review regulatory and market related developments for the past years in India. Identify structural gaps or deficiency in the Indian Debt Market. States recent regulatory changes and their impact on the market. Make suggestions/recommendations to develop Indian Corporate Debt market as one of most transparent and efficient market places. To review the role of Debt Market in accelerating the development of economic growth.

RESEARCH QUESTIONS
1. What is the significance of Debt Market upon the Indian Economy? 2. What are the different segments of Debt Market? 3. Which are the different areas for legal and regulatory framework in debt market? 4. How regulation is done in Debt Market? & which are the different bodies which regulates the debt market? 5. What are the effects of recent regulatory changes of debt market?

Page 1

Debt Market: The Regulatory Framework

HYPOTHESIS

INTRODUCTION
Financial Markets in India have several facets and are segregated into Capital and Money markets. Product based classification gives rise to segmentation of market into equity, debt, foreign exchange and futures. In many countries, debt market (both sovereign and corporate) is larger than equity markets. In fact, in matured economies debt market is three times the size of the equity market. Investment in equity being riskier, certain class of investors chooses to invest in debt, based on their risk appetite and liquidity requirements. In fact, most investors like to spread their investments into equity, debt and other classes of assets for reasons of optimal combination of return, liquidity and safety. A vibrant debt market enables investors to shuffle, reshuffle their portfolio depending upon the expected changes. Debt market provides financial resources for the development of infrastructure. Therefore, a well functioning of debt market becomes significant for all the market participants. The forcefulness of Indian debt market leaves much to be desired. So it was felt with our regulatory responsibility of developing the market that greater focus should be provided by SEBI on development of debt market. Financial markets have been largely determined by two factors, i.e. technology and regulation. At present, technology is freely available. As a result, we need to focus on the critical role regulation plays in the development of a market. Regulation determines what can, and cannot, be done and provides the operating environment. However, in India, regulation has developed, as also restricted, the growth of the Indian debt market.

PREFACE AKNOWLEDGEMENT ABBREVIATIONS

Page 2

Debt Market: The Regulatory Framework

CHAPTERIZATION
The researcher has divided the Chapters as follows: CHAPTER 1 Introduction

The First chapter deals about Introduction of the study. It includes Object, Rationale, Scope, Hypotheses, Methodology, Importance, Utility and Scheme of the study. CHAPTER 2 Debt Market in India: An overview

The Second chapter deals about an overview of Debt Market in India. This chapter will analyse the basic concept of Debt Market and Debt Securities. CHAPTER 3 Types of Debt Market

The Third chapter deals about the Types of Debt Market, i.e. Primary Debt Market & Secondary Debt Market. This chapter will also look into the significance of Debt Market in Indian Economy. CHAPTER 4 Legal & Regulatory Frameworks

The Fourth chapter deals about the Legal and Regulatory issues of Debt Market. This Chapter would specifically analyse in the area of Debt Derivatives and Debt Market Transactions. It would also deal with recent initiatives by SEBI and its impact. CHAPTER 5 Conclusion & Recommendations

The Fifth chapter deals about the Conclusion and Recommendations in the Regulation and developing of Debt Market in India. This Chapter would also give some suggestion for Legal Reform in the Regulation of Debt Market.

BIBLIOGRAPHY 1. Financial Institutions and Markets by L M Bhole and Jitendra Mahakud (Tata McGraw Hill Publication, New Delhi) REFERENCE 1. www.sebi.gov.in 2. www.nseindia.com -------------------------------------------------------------------------

Page 3