New Delhi, Feb 10: Securities Exchange Board of India (SEBI) will soon issue guidelines on corporate bonds to encourage firms to explore the opportunity for raising funds, detailed rules for which will be released in September this year.

SEBI Chairman Ajay Tyagi lauded the government’s recent proposal to mandate listed companies to raise 25 percent funds via corporate bonds.

Finance Minister Arun Jaitley while presenting the Union Budget 2018-19 had stated that the market regulator will consider mandating large corporates to meet 25 percent of debt needs from the market.

Tyagi further said that the long-term capital gains tax will have no impact on Indian markets, adding, however, that global factors pose bigger risk.

He also opined that recent volatility of the stock market may continue for some time due to global reasons. However, for small investors, Tyagi claimed that there is no cause of concern, as can invest via Mutual Funds (MFs), although it can’t be as risk-free as deposits.