As regards benchmarks, many countries have been taking efforts towards consolidation and creation of benchmarks and the procedures depend on the composition and stock of existing debt and how much debt is proposed to be raised. Another issue relates to whether a move to marked-to-market for investments raises any risks in terms of stop-loss sale, etc.
While marked-to-market serves to encourage secondary market trading, it is necessary to have a liquid market to correctly price securities. The RBI has taken a number of measures to enhance the secondary market liquidity in the Government Securities market.