A concerted effort is now being made to set up the institutional and technological structure that would enable the corporate debt market to operate. Furthermore, the on-going reforms in the area of social security coupled with the emergence of pension and provident funds are expected to increase the demand for long-term debt instruments.
In the process, the investor base for government securities would be broadened, extending the monetary transmission across new players and participants. For monetary policy to be more effective, the monetary transmission process has to be improved on a continuous basis so that price discovery is better.