Budget Briefs:Government proposes measures to deepen Corporate Debt markets

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  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.