Infra bond trading can't deepen debt market: RBI

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Reiterating not to allow infrastructure bonds to be traded, the Reserve Bank of India said that it does not feel such a move will help deepen the country's growing corporate debt market.

"Allowing trading of bonds issued for infrastructure lending will not help deepen debt markets," the newly-appointed Reserve Bank deputy governor S S Mundra said at an industry summit.

Last month, RBI had said that trading of such bonds was not permitted, said the media report.

The central bank in July had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements, added the media report.

Story first published: Thursday, August 21, 2014, 23:00 [IST]
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