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With a view to strengthening the capital markets, the Budget permits Foreign Institutional Investors (FIIs) to submit appropriate collateral, in cash or otherwise, as prescribed by Securities and Exchange Board of India (SEBI), when trading in derivatives on the domestic market. SEBI has also been authorized to set up a National Institute of Securities Markets for teaching and training intermediaries in the securities markets and promoting research.
In order to ensure that the corporate bond market is further strengthened and catches with the equity market, the definition of ‘securities’ under the Securities Contracts (Regulation) Act, 1956 has been amended so as to provide a legal framework for trading of securitized debt, including mortgage-backed debt. A high level expert committee on corporate bonds and securitisation will be appointed to look into the legal, regulatory, tax and market design issues in the development of corporate bond market.
SB/RS/AS
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