What is the news?
Government has announced the setting up of a Single Security Market Code.
- Coverage: It will consolidate the provisions of SEBI Act,1992, Depositories Act, 1996, Securities Contracts (Regulation) Act,1956, and Government Securities Act,2007.
- Impact: This move will improve the ease of doing business in the country’s financial markets. Moreover, it will cut down compliances cost and do away with friction between various stakeholders.
Institutional body for bond market:
- News: Government has proposed the establishment of a permanent institutional body. It will purchase investment-grade debt securities both in stressed and normal times. Thus, It will help in the development of the bond market.
- Impact: This would bring confidence among participants in the corporate bond market during times of stress and will improve the secondary market liquidity.
Source: The Hindu