Along with the Government, SEBI, Reserve Bank’ s endeavors have been to develop a deep and vibrant debt market including for mortgage securities in a calibrated manner so as to ease financing pressures on the banks and also to provide an alternate avenue for raising long term resources. Reserve Bank has permitted investments by banks in mortgage backed securities subject to certain conditions.
This form of equity financing, for example family capital invested in small companies, also contributes to the large share of equity financing of euro area non-financial corporations.4 For the six new Member States for which data on unquoted equity is available, its share in total equity financing is 80% or more.