NSE, NSDL push for debt market demat

The NSE and NSDL are collaborating to enable provident funds, trusts and retail investors to hold debt securities in demat form, bypassing the cumbersome physical delivery process. By opening constituent SGL (subsidiary general ledger) accounts, the initiative aims to facilitate immediate delivery-versus-payment, reducing settlement risks and delays. This move is expected to deepen the debt market and allow smaller entities to trade government securities with the efficiency of large banks.

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Development finance institutions have played a constructive role in establishing India's industrial base. However, these institutions seem to have moved away from their developmental role and are getting entangled deeper in management and control of private sector industries. Corporate circles have been pleading for a re-examination of the role and appointment of nominee directors to avoid day-to-day interference in company operations. Furthermore, some argue that financial institutions should keep their funds rolling by disposing of shares with a ready market. The concept of growth or mutual funds has yet to take root in the country, but such funds could prove successful in mobilising and canalising community savings for industrial development.

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