Niti Aayog is exploring ways to realign the balance between the very deep government debt market and the corporate debt market, a top official said on Friday.
The government think tank will also examine the possible impact of any moves which may be aimed at deepening the corporate debt market, its vice chairman Suman Bery said at an event here.
"A ...balance that we are going to have to get right is between corporate debt and government debt, and exactly what that takes in terms of both fiscal adjustment and in terms of the liquidity in the corporate debt market. These are issues that we have been exploring at Niti (Aayog)," Bery said at an event organized by the Sebi-promoted NISM here.
The government securities market is very deep for many years now, helped by policies like a mandatory statuary liquidity ratio (SLR) for banks which ensures that the government has adequate resources to carry out its developmental agenda. There is also a very active secondary market where such bonds