"Those companies which are supposed to be part of the 'Make in India' campaign, who are supposed to be needing resources, they are still quite some distance away from tapping the bond market," Sinha said addressing a Crisil event here.

He said the banks and financial sector account for over 70 percent of the issuances in the corporate bond market, which has witnessed an 19 percent growth in issuances every year since FY05.

The Modi-led Government launched the 'Make in India' initiative last year to transform the country into a manufacturing hub, to help generate employment in the country and also help establish it as an exporting powerhouse.

Making a case for greater transparency, Sinha said that over 95 per cent of the bonds are private placements, even though mechanisms of reporting and listing are available with us.

The financial sector regulators are committed to help the corporate bond markets, Sinha said, enumerating the measures taken by Sebi, RBI and insurance watchdog Irda for the same.
On the progress by the Employees Provident Fund Organisations (EPFO) with regard to play in the corporate bond markets, Sinha said a "major change is required" in this.

The bulk of investments undertaken by the EPFOs are in public financial institutions, he said, adding that the 13 percent share of the EPFO in the corporate bond market also includes their investments in banks' fixed deposits.

"If we carefully analyse, this is one area where major change is required. I am sure government and other agencies are working towards it, but this is an area where a lot of improvement is needed," he said.

On the newly introduced real estate investment trusts (REITs), Sinha said there will be some launches "very soon", even though the industry has expressed concerns on the taxation front.

"We are hoping that very soon, we will have some companies who are going to launch their REITs...my impression is that whatever happens on the tax front, by any additional measures, there is good appetite for REITs to come through," he said.

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