Corporate Bonds To Be Made Part Of Fundraising For Projects: RBI Official

Mumbai: Reserve Bank of India (RBI) executive director Chandan Sinha on Tuesday said it will be made compulsory for companies to raise funds via corporate bonds for some projects such as infrastructure.

"We are already talking of moving the corporates towards bonds financing. There would be a compulsory recourse for part financing of their projects," he said at a conference on corporate bonds in Mumbai.

The comments come as India is looking to develop its corporate bond markets, reducing the reliance of companies on a struggling banking sector for funding.