Introduction
While the Fixed Income Market in India has attained some
depth and maturity in government Securities, the Corporate Bonds
Market is yet to reach even close to the same level. However,
with a heightened focus on treasury operations by Banks and
increase in the number of market participants, the market is in
a high growth phase. The Institutional Dealing Team at Darashaw
is amongst the Top 3 intermediaries in the secondary market for
corporate Bonds, and as knowledge provider, services the
investment needs of the participants.
Core Functions of the team
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Intermediation services in the Secondary
Corporate Bond market to Darashaw’s client base which includes
around 200 investors comprising Banks, Financial Institutions,
Primary Dealers, Mutual Funds, Insurance Companies, Pension &
Provident Funds and Corporates.
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Structured Deals in conjunction with the
Investment Banking Team
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Knowledge sharing through Daily Deal Records &
Weekly market Analysis. The Daily Deal Record is used, besides
our clients, by News Wires and by CRISIL for its Valuation
Matrix.
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Link between the Wholesale Debt Market and the
Retail Market
Future Outlook
The Corporate Bond Market today is only around 3% of the
market for Government Securities in India, while Internationally
the Corporate Bond Markets are larger than the Treasury Bond
Markets. This alone presents a strong argument for high growth.
A greater focus on Treasury operations by Banks and faster
settlements through dematerialisation of Securities has
contributed to the growth of the market.
The investor base is increasing every year with more Mutual
Funds, Insurance Companies and Corporates entering the market.
One of the largest investors worldwide, the Pension & Provident
Funds, need to be recognized as mainstream investors and the
norms governing their investments need to be relaxed.
With greater flexibility and freedom of investing, the
participants will grow and the Indian Corporate Bonds market
will evolve into a stronger, more vibrant & liquid market.
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