Budget Briefs:Government proposes measures to deepen Corporate Debt markets

  1. Finance minister has said that the government will work with the Reserve Bank of India(RBI) and Securities and Exchange Board of India(SEBI) to deepen the corporate debt market with a special focus on infrastructure.
  2. The minister also announced that a Credit Guarantee Enhancement Corporation will be set up in the current fiscal year as part of the measures to deepen the bond market.
  3. Currently,the government runs a Credit Guarantee Fund Scheme for Micro and Small Enterprises to make available collateral free credit to these small firms.
  4. A trust under the scheme was set up in association with the Small Industries Development Bank of India(Sidbi) and guarantees loans up to ₹1 crore.Guarantees offered by the trust allow small and medium enterprises to borrow at cheaper rates.