r gandhi : corporate debt market : what needs to be done – a reaffirmation inaugural address by mr r gandhi, deputy governor of the reserve bank of india, at the “ care ratings debt market summit – 2015 ”, mumbai, 23 march 2015. * * * assistance provided by ms anupam sonal is gratefully acknowledged. good morning ladies and gentlemen! 2. i would like to thank care ratings for taking this initiative of holding this summit on the corporate debt market. as i can see, the seminar is quite exhaustive in content and we will be having some excellent speakers representing various segments of the industry and hence it will be very interesting to hear their views. as a regulator, we in the reserve bank do have our own approach to the development of any market, but to hear the market participants is always important for us as it is only when we debate the issues that we can come to a workable solution. i am sure that we will have a lot to pick up from these deliberations that take place here today. corporate bond market in india – current status 3. indian corporate debt market has seen some growth in recent years, both in terms of number of issues and amount. the outstanding issues which were at 12, 155 as at end march 2011 increased to 18, 664 by end dec 2014. during the same period, the amount outstanding increased from ₹ 8, 895 billion to ₹ 16, 485 billion. while the types issued included fixed rate bonds, floating rate bonds, structured notes and other types, the fixed rate bonds were predominant both in number and value. another characteristic of the issuances was that almost all issuances were by financial sector entities. yet another peculiar feature of our corporate bond market is that private placements are the norm. the public issuances which were ₹ 94. 51 billion in 2010 – 11 increased to ₹ 423. 83 billion in 2013 – 14, though it fell back to ₹ 90. 49 billion in the current year till feb 2015. the private placements were ₹ 2187. 85 billion in 2010 – 11, ₹ 2612. 82 billion in 2011 – 12, ₹ 3614. 62 billion in 2012 – 13, ₹ 2760. 54 billion in 2013 – 14 and ₹ 2692. 45 billion in the current year till dec 2014. the secondary market trading was ₹ 6053 billion in 2010 – 11, ₹ 5938 billion in 2011 – 12, ₹ 7386 billion in 2012

harun r khan : taking on risk – the sensible way keynote address by mr harun r khan, deputy governor of the reserve bank of india, at the cii “ confederation of indian industry ” national risk management summit 2015 on “ de - risking the future of india inc. ”, mumbai, 10 february 2015. * * * the speaker deeply acknowledges the contributions of shri. r gurumurthy of the reserve bank of india. shri suresh senapaty, shri richard rekhy, shri deepak parekh, smt. greeta varughese other distinguished guests & invitees on and across the dais. this invitation to give an address at this important cii event gives me a great pleasure. cii seems to have chosen a very interesting theme for this national risk summit – “ de - risking the future of india inc. ” – i am, of course, wondering why cii is thinking of de - risking the future of india inc. though the participants here would appreciate the fact that de - risking would also mean that they have no business to be in “ business ”. risk - return - retribution in a vucap world all human enterprise, more so business activities essentially involve risk taking, in a bid to earn the “ reward ” or “ return ” according to the risk - return trade - off. this relationship is, however, far from simple as the reckless chasing of returns may result in unimaginable levels of risks not only for the individual enterprise but also for the whole system. the risks posing a threat to the financial and economic balance of the world today are far from being properly managed and controlled. i understand that the prevailing evidence of continuing, if not increasing, appetite, for fast returns is one of the major motivations behind the broad theme for this seminar. while developing my thoughts on the much used idea of the risk - return trade - off, i was led to think of a missing “ r ” – requital – in the risk - return conundrum. the tremendously forceful human fascination for reward and the almost irresistible tendency to take or overlook risks in that pursuit has, more often than not, resulted in inevitable retribution or requital, in the long term. in the present context, probably it is the zeitgeist that drives us crazy. having seen the massive impact of the global financial crisis, we may want to take a pledge to de - risk the future. peter bernstein, the american financial historian,