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DEBT MARKET IN INDIA: REGULATORY FRAMEWORK

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REGULATORY FRAMEWORK

(i) The Public Debts Act, 1944: This Act governs the Government Debt Market.

(ii) SEBI Regulations: SEBI Regulations are only applicable to Listed Debt Securities.

(iii) RBI Guidelines. 

REGULATORS

(i) Union & State Government

(ii) Ministry of Finance, Government of India

(iii) Reserve Bank of India

(iv) SEBI  The Union Government and the State Governments have been empowered to borrow money upon the security of the Consolidated Fund of India and the States from the Market within permissible limits. The Union Government debt consists of three components, internal debt, external debt and other liabilities. The Reserve Bank of India manages the public debt and issues new loans on behalf of Union and the State Governments under the powers derived from the Reserve Bank of India Act and The Public Debts Act, 1944. 

SEBI controls bond market and corporate debt market in cases where entities raise money from public through public issues. It regulates the manner in which such moneys are raised and ensure a fair play for the retail investor. Apart from the two main regulators, the RBI and SEBI, the other regulators are the Central Provident Fund Commissioner and the Ministry  of Labour. The Central Provident Fund Commissioner and the Ministry of Labour regulate the Provident Funds.

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