Capital Market regulator SEBI will frame new regulations by September this year on mandating large corporates to meet about one fourth of their financing needs from the bond market, its Chairman Ajay Tyagi has said.
These will be "light touch" regulations and would cover only listed corporates, Tyagi told reporters after Finance Minister Arun Jaitley's post budget interaction with the SEBI Board in the Capital on Saturday.
Tyagi said that the proposed regulations will address issues like what constitutes "large companies" and other aspects.
He said that corporate sector has been borrowing more from the bond markets in the last two years and this was a welcome trend. In fact, the quantum raised last year was much more than the incremental banking sector credit extended to corporates, Tyagi noted.
The Finance Minister Arun Jaitley had in this year's budget speech said that SEBI will consider mandating, beginning with large corporates, to meet about one fourth of their financing needs from the bond market.
SEBI Chairman also said that SEBI Board would at its next meeting take up for discussion and approval the recommendations of the Uday Kotak Committee report on corporate governance.
RELIGARE, FORTIS
Tyagi said that SEBI will be looking into the corporate governance issues and promoter role raised in the Fortis Healthcare matter.He also said that SEBI was already examining the matter on Religare Enterprises.