However, the suggestion for relaxing the minimum tenor of these NCDs from the proposed tenor of 90 days to 7 days cannot be acceded to as under the law, corporates are prohibited from issuing unsecured debentures with maturity of less than 90 days. Allowing markets to issue very short-term instruments can have systemic implications.
In any case, there are other instruments in the short-end like repo, CBLO and CPs that can meet the requirement of investors. Fixed income markets 38. The fixed income markets in India, as is the case with the developed world is dominated by the Government securities markets.