News — ChangeLab

Many Indonesian bond holders are closely watching the current decline in the country's benchmark yields. Indonesia's yield curve fell to its lowest level in more than a year this month as inflation sl

India's markets regulator this week proposed expanding the definition of a "qualified institutional buyer" of securities, potentially allowing more market participants to invest in Indian bonds.

The Securities and Exchange Board of India, in a recently released document, ruled that institutions such as cooperatives, housing finance companies, non-bank finance companies, refinancing agencies, pension funds, reinsurers, small finance banks and universities should be included among qualified bond buyers.

At this point, many experts note that there has not been a clear established definition in Indian law as to who can become a qualified buyer of local bonds. That is why market participants are relying on the definition established for persons investing in stocks of banks, mutual funds and insurance companies.

Our team believes that such an expansion of the pool of qualified buyers could help increase the supply of bond issuers' funds, facilitate clearer pricing, and reduce the cost of fundraising.