- Fundraising through the route plunged to a six-year low in 2021-22 to Rs 5.88 lakh crore.
- The main reason behind it was the good performance of the equities and aggressive fund disbursal by banks at lower interest rates.
- But in near future, it might be uncertain as interest rates are expected to firm up, liquidity to get tighter, and inflation to remain high.
- Apart from that listed companies have raised lower amounts of funds through bonds and the credit off-take from banks has also been slow.
- Debt markets are mostly tapped by the financial sector companies who use funds for onward lending.
- It has also been expected that constant liquidity in the system and overall lower credit off-take will keep the dependence low on public issuance of corporate debt.
Question:
Q.1 As per a recent SEBI report, fundraising through private placement of corporate bonds dropped to __________ percent in the current financial year?a. 40%
b. 39%
c. 25%
d. 36%
