With the deployment of funds raised by banks under the TLTRO window taking place – April has been an unusually busy month for the Indian Corporate Bond Market witnessing a long list of NCD issuances getting placed. Approximately rupees eighty five thousand crore capital has been raised by thirty six companies across sectors from the market . This excludes the market linked debenture issuance, State Government’ Guaranteed bonds, unrated privately placed NCDs issued by few real estate/infra companies etc.
As it being covered so extensively in all media, the shutdown of six debt schemes by Franklin Templeton can have far reaching implications. The article examines the immediate and mid-term ripple effect of the Franklin upheaval. A) Impact on portfolio companies of credit focused funds : While a lot has been written about the pain fund investors will have post this stress , an aspect which has gone un-noticed is the impact on portfolio companies. Mutual funds normally try to […]
Indian debt mutual fund industry is witnessing its very own flight-to-safety moment as investors are shifting capital from smaller AMC to the larger ones. A closer look at the data of Association of Mutual Funds in India (AMFI) for March’19 & March’20 reveals that – in most of the debt-fund categories, top three AMC by AUM viz. SBIMF , HDFCMF and ICICI Prudential MF(IPru) have made significant gains in market share. For instance, in the liquid fund category, which constitutes […]
“Temple” is how the fund house that announced lock-down on six debt funds was referred to in common market lingo. If Franklin was “Temple”, its famed CIO was nothing short of a “Demi-god” of Indian Credit Bond Market. However, the recent incident proves that there exist certain structural issues and till these are resolved no power can ensure stability of Credit focused mutual funds in India. In this article we have tried to highlight these issues and have also offered […]
With the intent of making external borrowing more efficient Reserve Bank of India (RBI) over the past couple of years has been actively rationalizing and liberalizing the External Commercial Borrowings (ECB) Framework. The has included relaxing end use stipulations, expanding the list of eligible borrowers and lenders, allowing more issuance under automatic route, rationalizing the minimum tenor and all in cost thresholds and simplifying the overall framework. Timeline of ECB Reforms The efforts of the regulator are beginning to bear […]