New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    Which segment of the debt markets has highest market

    capitalization?
    A Call money markets Correct Answer Incorrect Answer
    B Government bonds Correct Answer Incorrect Answer
    C PSU bonds Correct Answer Incorrect Answer
    D Corporate bonds Correct Answer Incorrect Answer
    E Certificate of Deposits Correct Answer Incorrect Answer

    Solution

    In India the Government bonds has the highest market capitalization among debt instruments. Corporate debt market is still not very developed in India and SEBI and government is trying to deepen the corporate debt market by encouraging large corporates to raise more funds through debt markets rather than from banks. One of the measures introduced by SEBI is that the large corporates have been mandated to raise at least 25% of their incremental borrowings through issue of debt instruments.

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