SEBI Chairman Ajay Tyagi (PTI Photo) SEBI Chairman Ajay Tyagi (PTI Photo)Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi on Saturday said that the Insolvency and Bankruptcy Code (IBC) will help boost investor confidence and encourage fund inflows into the corporate bonds market, especially in low-rated instruments.The bankruptcy law was enacted to ensure time-bound settlement of insolvency and enable ease of doing business. “From an investors’ standpoint, an effective and robust bankruptcy regime is important for developing the corporate bonds market. “Successful implementation of the IBC will increase confidence among investors, including foreign ones, and is likely to increase liquidity in low-rated papers,” said Tyagi. In our country fund raising from bond was 17.9 per cent of GDP in 2016 and it would be interesting to see the impact of implementation of this code on the corporate bonds market,” said Tyagi. Tyagi said the August 4 Sebi circular has tightened the disclosure norms for listed companies on default of bank loans and other financial intuitions.

Source: Indian Express August 20, 2017 00:45 UTC