BSE Institute Limited organized an exclusive International conference on Bond Markets :
BSE Ltd organized an exclusive International conference on bond markets on saturday, 22nd December 2012. The members of the advisory council of BSE Institute Ltd., Dr. Urjit Patel chaired the panel on the "Macroeconomic" perspectives on the role of bond markets. Dr. Patel pointed out that although the functioning of debt markets in India has been undisputedly transformed since the inception of reforms, there is still a long way to go. The government dominates the debt market, comprising a large chunk of outstanding debt, but only a small part of its total outstanding stock is traded. This needs to rise significantly. Dr. Suresh Sundaresan of Columbia University, one of the world's leading academicians in the bond markets and Dr. Gangadhar Darbha, Executive Director of Nomura Securities co-chaired the conference along with Mr. R. Sridharan, MD of CCIL, who addressed the gathering in the inaugural session.
Mr. Ananta Barua, Executive Director at SEBI participated in the deliberations too.
The conference was inaugurated by Dr. Subir Gokarn, deputy governor of RBI. Speaking at the international conference on bond markets organized by BSE Ltd., Mr Gokarn said " One of the issues we have in terms of moving from policy actions to market outcomes is the uneven nature of liquidity across the yield curve. In India, everybody is focused on the 10 year yield, however, the 10 year yield should not be the only determining factor in investment and consumption decisions". He further added, "As a vehicle for transmission of monetary policy, the effectiveness, efficiency and the thickness of bond markets particularly treasury and government securities is absolutely critical"
Mr. Ashishkumar Chauhan, MD and CEO of BSE Ltd. said, "While India boasts of a world-class equity market, its bond market has yet to build critical mass. The government bond market remains illiquid and the corporate bond market, remains restrictive to specific participants. There
is a need of creating a deep, liquid and viable bond market especially in the light of the infrastructure financing requirements running in to
trillions of dollars. The focus of this conference is to examine issues and identify steps that can foster the evolution of our bond markets for
helping build India's infrastructure in a fair, efficient, transparent, cost effective and liquid markets."
Talking about the role of secondary government bond markets in disciplining sovereign borrowing, Dr. Viral Acharya, professor at NYU Stern school of business said, "Default on domestic bond holdings hurts domestic activity by rendering domestic banks insolvent or reducing activity in financial markets. To ensure that the country’s debt capacity grows, it has to raise the future government’s ability to pay as well as raise its willingness to pay."
While focusing on key issues concerning the fixed income markets, the panel discussions took up important issues like sovereign bond markets in developed economies, role of government bond markets in disciplining sovereign borrowing, macro economic perspective on role of bond markets etc. Other key speakers at the conference included Dr. Ashima Goyal of IGIDR, Dr. Ajit Ranade of Aditya Birla Group, Mr. V. K. Sharma of RBI, Mr. Neeraj Gambhir of Nomura Securities, Dr. Urjit Patel of Boston Consulting Group, Mr. Siddhartha Roy of CCIL, Dr. Susan Thomas of IGIDR amongst others.