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Need urgent reforms to bring PF money into corp bonds: SEBI

SEBI chairman UK Sinha said there is a lot on enthusiasm from foreign players in corporate bonds.

As mandated by the Union finance ministry, Securities and Exchange Board of India (SEBI) has been seeking to invest a chunk of the Employees’ Provident Fund Organisation (EPFO) corpus into Indian equities. Speaking about it on Wednesday, SEBI chairman UK Sinha there is lost of interest in Indian corporate bonds and the government where must work to bring in liquidity.

Noticing a lot on enthusiasm from foreign players in corporate bonds, Sinha said the sector requires a lot of reforms. To begin with Foreign Portfolio Investment limits in corporate bonds must be enhanced. He also said the government must look at boosting retail investor participation in corporate bond market.

The SEBI chairman has been vocal about ploughing PF money into equities to check dependency on Foreign Portfolio Flows, which hit a record high in 2014 with a very big portion coming from pension funds abroad. He has been in favour of investing the corpus in the buoyant equity market for the benefit of Indian workers, which in turn would act as a counter balance to a possible exodus of foreign funds.

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