The govt's step could push investors to choose riskier equity, or to fall back on bank deposits, thereby negatively impacting the debt market which actually needs to grow, writes T N Ninan
Does SVB collapse pose a contagion risk for India? Why is Apple so bullish on India? Is it time to shift focus from equities to debt? What is deposit insurance? All answers here
The government will provide 90% of the money for the fund, and other asset managers would contribute the rest, deputy managing director D.P. Singh said
The market capitalisation of the equity market is almost Rs 290 trillion, but the corporate outstanding is at Rs 40 trillion, indicating more traction is needed on the debt side
In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market
Indian companies and banks have raised around Rs 35,000 crore ($4.39 billion) from Sep. 1 to Sep. 7, slightly short of the Rs 45,000 crore raised in August
Over the past few years, the return from the stock market has been far higher amid abundant liquidity that poured in from foreign and domestic investors