India’s Bond Bankers Push Regulator for More Funding Flexibility

Indian bankers that specialize in selling corporate debt securities are asking the financial regulator for permission to borrow funds against bonds, according to people familiar with the matter, as authorities themselves seek to deepen local capital markets.

The intermediaries known as merchant bankers in India say the move would give them more financial flexibility to underwrite debt issuances, the people said, asking not to be named discussing private matters. Currently, the amount they can underwrite is limited by their net worth, and they are barred from tapping the bond market for this activity.