Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
The International Financial Services Centres Authority (IFSCA) is working to ensure that regulatory compliance does not increase the cost of capital for businesses, its chairperson K Rajaraman said. Speaking at an Assocham summit on the corporate bond market, Rajaraman said regulations should be sufficient to maintain order in the market without creating unnecessary costs for businesses. He also highlighted the need for Indian companies to expand globally and access foreign currency capital. Bank lending in GIFT City has crossed USD 85 billion, while outstanding external commercial borrowings are around USD 45 billion.
The International Financial Services Centres Authority (IFSCA) is working to reduce the impact of regulatory compliance on the cost of capital, its chairperson K Rajaraman said while addressing the Assocham IX National Summit & Awards on Corporate Bond Market.
Rajaraman said the regulator is looking at ways to keep regulations sufficient to maintain order in the marketplace without adding unnecessary costs to businesses. He said reducing such friction would help make capital reaching the corporate sector more cost efficient.
He pointed to laws, regulations and the cost of doing business as areas that can create additional friction for companies. According to him, these costs need to be addressed so that businesses can access capital more efficiently.
Rajaraman also said Indian companies need to expand internationally and develop into global businesses, which would require greater access to foreign currency capital.
Bank lending in GIFT City has crossed USD 85 billion, while outstanding external commercial borrowings (ECBs) stood at around USD 45 billion, according to the figures cited by the IFSCA chairperson.
Debt issuance through exchanges in the International Financial Services Centre has also increased. Rajaraman said total outstanding debt issued through the exchanges had reached around USD 70 billion, of which about USD 16 billion was sustainable debt.
He further said Indian companies have considerable scope to raise additional debt, indicating that there is substantial room for corporate borrowing in the country.
The comments come as GIFT City continues to develop its role as an international financial centre, with banking, debt markets and foreign currency financing forming key parts of its financial services ecosystem.
Source PTI
Advertisement
Facebook
Whatsapp
