A REPORT ON

A STUDY OF DEBT MARKET IN INDIA

SUBMITTED TO CHITKARA
BUSINESS SCHOOL
In partial fulfillment of the requirements for the award of degree of

Master of Business Administration

SUBMITTED BY:

SUPERVISED BY:

Rashmi Rani

Dr. Renuka Sharma

Roll No. CUN 130550047

Chitkara Business School

MBA (FINANCE)

(ASSOCIATE PROF.)

Session 2013-2015

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ABSTRACT

A well-developed capital market consists of equity and bond market. A deep and liquid bond
market with a significant role of the corporate bond market segment is considered to be important
for an efficient capital market. A vibrant corporate bond market ensures that funds flow towards
productive investments and market forces exert competitive pressures on lending to the private
sector. While India boasts of a world-class equity market, its bond market is still relatively
underdeveloped and is dominated by the Government bond market. In this Study, we trace the
reforms which have been put in place in the last decade and consequent developments of the
corporate bond market in India. Government policy reforms and development of a vibrant
Government bond market was crucial for the development of the corporate bond market. Korean
experiment and consequent failure with the Bond Guarantee scheme on the other hand had
important implications for the development of the Indian corporate bond market.
It is observed that though there is scope for further improvements in certain areas, such as
reforming the stamp duty, substantial developments have taken place in the corporate bond market
in India owing to measures taken by Securities Exchange Board of India (SEBI), Reserve Bank of
India (RBI) and the Government of India (GoI) in order to implement the recommendations of
various committees on corporate bond market. A study of the impact of the reform process on the
corporate.

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DECLARATION
I RASHMI RANI declare that this work is my own work. It is submitted in the partial
fulfillment of the requirements for the degree of master of Business administration at the
Chitkara business school Chitkara University.it has not been submitted before for any
degree or examination to any other University.

(RASHMI RANI)
CUN 130550047
DATE : 25-04-2015

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ACKNOWLEDGEMENT
This Project Report has been made possible through the direct cooperative of various for whom I
wish my express my appreciation & gratitude. Preservance, Inspiration and Motivation always
played a key role in success of my venture. At this level of my understanding it is often difficult
to understand the wide spectrum of knowledge without proper guidance and advice. I got a
golden opportunity through this project to work related to my topic with my mentor Dr. Renuka
Sharma.
I am presenting this report thoroughly based on my Capstone Project where I did the project
related to study of debt market in India.
Firstly, I would like to thank Dr. Renuka Sharma who is Mentor of my project whose under I
did my project then after I am very grateful to my friends who has helped me directly and/or
indirectly in preparing this report.

RASHMI RANI

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TABLE OF CONTENTS
SL.

TITLES

PAGE NO.

NO.
1.

TITLE PAGE

2.

ABSTRACT

ii

3.

DECLARATION

iii

4.

ACKNOWLEDGEMENT

iv

5.

LIST OF TABLES

v- vi

6.

LIST OF FIGURES

Vii

7.

CHAPTERS:

I
II

8.

INTRODUCTION

1-13

LITERATURE REVIEW

14

III NEED OF STUDY

15-16

IV RESEARCH METHODOLOGY

17

V DATA ANALYSIS AND INTERPRETATION

18-62

VI FINDINGS OF THE STUDY

63-65

VII CONCLUSION/RECOMMENDATIONS

66-68

BIBLIOGRAPHY

69

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LIST OF TABLES
S. NO.

TITLES

PAGE NO.

Table 1

22

Table 2

30

Table 3

31

Table 4

32

Table 5

Table 6

35

Table 7

37

Table 8

Table 9

38

10

Table 10

52

11

Table 11

53

12

Table 12

54

13

Table 13

55

14

Table 14

56

15

Table 15

57

34

38

LIST OF FIGURES
S. NO.
1

TITLES
Figure 1

PAGE NO.
4

Figure 2

19

Figure 3

36

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Figure 4

36

Figure5

59

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