New Student User- Use Code HELLO

Register Now

Fund raising via debt placement drops 39% in April-May

Published on July 04, 2022
Current Context: Fundraising by listed companies through private placement of corporate bonds dropped 39% to Rs 32,405 crore in the first two months of the current financial year.
Fund raising via debt placement drops 39% in April-May
  • 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%
ebook store

About us

ramandeep singh

Ramandeep Singh is a seasoned educator and banking exam expert at BankExamsToday. With a passion for simplifying complex concepts, he has been instrumental in helping numerous aspirants achieve their banking career goals. His expertise and dedication make him a trusted guide in the journey to banking success.

  • Follow me:
Close Menu
Close Menu