E-enabling the debt market industry a framework for the future

Abstract

The Main Objective of this study is to determine if there exists potential to improve Liquidity and Transparency for Debt Market Operations through e-enabling specifically in the areas of Commercial Papers, Call Money Market, Foreign Exchange and Intercorporate Loans. The Study will include coverage of the existing working Model, its shortcomings, the advantages of ecommerce, the existing legal limitatations and the proposed Government Regulations and their impact, the existence of the Intermediary and Infomediary in the market place and their role in the future emarketplace. The Study will comprise of Interviews with the Functional Heads of Leading Banks like Canara Bank, Vijaya Bank, Leading Brokers like Kotak Mahindra Finance and JM Financial Services, the premier Rating Agency CRISIL and the role they can plan in the new marketplace. The Interview also covered heads of Finance in Leading Corporates like WIPRO, Hewlett-Packard, Oracle Corporation, Credibility.COM to determine how they utilise their Surplus Funds and also how they arrange for Short Term Funding. The Study included their views on if and whether emarketplace will be useful to them and their likely participation. The Study also concludes on how the emarketplace will work, what are the various agencies that are required to make it happen, the infrastructure needs of a emarket place and cost details as a percentage to setup an e-enabled Site. The Appendix includes the procedure to issue a commercial Paper and RBI Guidelines. It also includes a list of reference sites used for this study.