The Indian debt markets play an important role in the capital formation process. It comprises of two main segments, viz., the government securities market and the corporate securities market, besides a small emerging market for interest rate derivatives.
The market for government securities is the most dominant part of the debt market in terms of outstanding securities, market capitalization, trading volume and number of participants. It sets benchmark for the rest of the market.
Major investors in Debt Market are shown in table Participants and Products in Debt Market. There are two broad methods by which an Indian corporate can raise term debt from the capital market. The first is the private placement market where the issuer invites a select group of qualified institutional investors to subscribe to bonds/debentures issued: The second method is a Public offer where securities are offered to the Public at large including retail investors.
The market for government securities is the most dominant part of the debt market in terms of outstanding securities, market capitalization, trading volume and number of participants. It sets benchmark for the rest of the market.
Major investors in Debt Market are shown in table Participants and Products in Debt Market. There are two broad methods by which an Indian corporate can raise term debt from the capital market. The first is the private placement market where the issuer invites a select group of qualified institutional investors to subscribe to bonds/debentures issued: The second method is a Public offer where securities are offered to the Public at large including retail investors.
