New Delhi: Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman inaugurated the Corporate Debt Market Development Fund (CDMDF) and initiated the muhurat trading on Limited Purpose Clearing Corporation mechanism called AMC Repo Clearing Limited (ARCL), in Mumbai today. The Secretary, Department of Economic Affairs (DEA) Shri Ajay Seth; Chairperson, Securities and Exchange Board of India (SEBI) Smt. Madhabi Puri Buch; and many leading market participants were present on the occasion. Both the initiatives intend to deepen the functioning of the corporate debt markets.
The Union Finance and Corporate Affairs Minister, in her speech for the Union Budget of 2021-22, had announced the creation of a permanent institutional framework to enhance secondary market liquidity in the Corporate Bond market during stressed and normal times, thereby instilling confidence amongst participants in corporate bond market. The Budget announcement has today manifested in the form of the Corporate Debt Market Development Fund (CDMDF).
Speaking on the occasion, Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman said, Indian capital markets have been a trendsetter of sorts in many aspects of trading, including being one of the fastest in terms of settlement of trade and also in certain areas related to risk mitigation and governance. Our equity markets have witnessed broad-based participation from all segments – retail investors with more than 11.5 crore Demat accounts on one side of the spectrum to Small and Medium Enterprises (SMEs) raising funds through IPOs on the other. We are witnessing a robust and all-around growth of financial markets today, remarked the Finance Minister.
The Finance Minister announced that the Government has taken a decision to enable direct listing of listed/unlisted companies on IFSC exchanges, which will be operationalised shortly enabling start- ups and companies of like nature to access global market through GIFT IFSC. This will also facilitate access to global capital and result in better valuation for Indian companies. Smt. Sitharaman said that Government’s vision for GIFT-IFSC transcends much beyond the realm of traditional finance and ventures into the realm of thought leadership. We envision it as the true embodiment of Atma Nirbhar Bharat, a hub of ingenuity and innovation, she added.
