15 ) ; • issuances are concentrated in the aa or above rating, largely by public sector entities and financial institutions • a majority of the issuances are concentrated in the 2 – 5 year tenor ; • limited / narrow investor base. investment mandates of institutional investors such as insurance companies, pension funds and provident funds do not permit large investment in corporate bonds ; • reissuance of bonds has not picked up ; • lack of functional trading platform with ccp facility like nds - om ( as available in government securities market ) impedes the growth of secondary market ; • market for credit risk protection instruments like cds has not yet developed ; • non - standardized stamp duties on corporate bonds across various states affects issuances. way forward 9. activating the corporate bond market will require a number of regulatory measures to address both the macro issues as well as the market micro - structure issues. while creating an efficient market infrastructure will create conditions for issuers and investors, the structural issues can be addressed over the longer term as the market evolves and the financial system gets more integrated with international markets. it would be convenient to look at the set of issues in a comprehensive manner. i would like to classify some of the possible measures in the “ 7i ” framework which i had talked about in one of my earlier speeches. bis central bankers ’ speeches issuer reissuance of bonds 10. corporates may be encouraged to re - issue existing bonds under the same isin code. this will augment market liquidity and potentially reduce the cost of borrowings. though sebi has recently allowed reissuances by the corporates, there has not been any reissue of bonds by any corporate. in order to encourage reissuances, there may be a need for some incentives in the form reduced documentation formalities, less issuance fees, etc. issuance of municipal bonds 11. an active corporate bond market would enable market for municipal bonds issued by the urban local bodies ( ulbs ). the potential for issuing municipal bonds assumes importance in the context of the proposal to set up 100 smart cities. however, the size of the municipal bond market in india is rather limited and is distributed over a few strong municipalities of ahmadabad, nasik, nagpur, etc. the possible reasons could be overlapping jurisdiction on municipal bodies leading to plethora of rules ; perceived lack of specialized project management support in ulbs ; non - transparent budgeting and accounting systems in many of the ulbs

policy maintaining economic balance is key to the making of monetary policy, as it is one of the most important pre - requisites of macroeconomic stability. in practice, this means that as the economic activity returns to normalcy, monetary policy stance must similarly be normalized. failure to do so will add undue pressure on inflation, ultimately posing risks to macroeconomic stability. thus this year, the monetary policy committee ( mpc ) will need to continue normalizing monetary policy. the amount and pacing of policy interest rate adjustments this year will be consistent with the outlook for growth and inflation as well as the surrounding risks. as always, the policy decisions will be grounded on informed and prudent deliberation by the mpc, with an aim of keeping core inflation within the target band as mandated by law. because many shocks, both of temporary and structural nature, cannot be foreseen, it is difficult to say beforehand what level of policy interest rate should be appropriate for this year. however, sustained negative real interest rates are usually not consistent with fostering economic balance. bis central bankers ’ speeches timely adjustments in policy interest rate will help keep inflation pressure in check, which in turn lead to low and sustainable borrowing costs in the long run. the bank of thailand has taken steps to enhance the transparency of monetary policy making, by announcing the mpc voting result together with the statement for the first time early this month. the first minutes of the meeting has also been released this morning. it is hoped that these information will help businesses and households understand the rationales behind the mpc policy decisions, and enable them to make better and more informed economic decisions. exchange rate policy the bank of thailand adheres to our policy framework, where exchange rate is not a policy instrument and hence is market - determined. however, recognizing the risks of high volatility in capital movements looking ahead, the bank of thailand has followed a three - part approach. the first is to develop a systematic capital flows master plan, with sequencing appropriate for the development of the thai economy and the evolving international financial market. part of this plan is to relax regulations that hinder thai residents from investing abroad, in order to foster more balanced capital flows. secondly, the bank of thailand will encourage the use of appropriate financial hedging instruments, in order to strengthen the risk management capability of the private sector, especially the small and medium - sized businesses. given the possibility of more volatility in the financial market looking ahead including the