The Insurance Regulatory and Development Authority (IRDA) decided to exclude lending by insurance firms to housing finance companies as exposure to the finance sector. In a statement, the insurance regulatory body said these loans would be henceforth treated as funding to the hous
Experts stress on the need for a coordinated effort from the government, Reserve Bank of India, Securities and Exchange Board of India and Insurance Regulatory and Development Authority (IRDA) to create a vibrant corporate bond market. Analysts point out that the exisiting primary issuance guidelines are constraining issuance of bonds in the debt market by corporates. Additionally, the corporate bond mar
The government should explore various options that can nurture IDF in an industry-friendly way, writes Vivek Rao. While conceptually Infrastructure Debt Funds (IDFs) would be very attractive for all stakeÂholders of the infrastructure sector including private sector developers, banks as well as the goverÂnment, IDFs would have to address certain challenges.
The government is finally preparing to launch its first IDF this year, albeit with a $3 billion corpus open to domestic investors alone. Vishal Shah and Smit Sheth hail IDF as a good beginning, but contend that the definition of infrastructure needs to be sharpened.
While in theory, the idea behind setting up IDFs is sound, the two structures proposed by the Ministry of Finance at present do not appear to have enough credit enhancement mechanisms to bring in domestic and foreign long term institutional investors, says Amit Dinakar.