India cbank says easing trading rules for infra bonds will not deepen mkts

MUMBAI Wed Aug 20, 2014 3:39am EDT

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MUMBAI Aug 20 (Reuters) - Allowing the trading of bonds issued for infrastructure lending will not help deepen debt markets, newly appointed Reserve Bank of India Deputy Governor S.S. Mundra said on Wednesday.

Last month, RBI had said that trading of such bonds was not permitted.

In July, the central bank had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements. (Reporting by Suvashree Dey Choudhury; Editing by Anupama Dwivedi)