In a bid to deepen the corporate bond market, the Government is working on setting up a ‘backstop facility’ as announced in the Budget, a senior government official said on Friday. Speaking at an event organised by CII, Additional Secretary, Ministry of Finance, Anand Mohan Bajaj said the government in consultation with RBI has increased foreign investor participation ceiling in corporate bonds from 9 per cent to 15 per cent.
On the corporate bond market, he said a lot has been done over the years and a lot needs to be done. "We are working on a very comprehensive facility. It will certainly instil confidence among the participants in the corporate bond market," he said.