U.S. Government Supports the Development of India’s Municipal Bond Market

December 10, 2007

MUMBAI –The United States Agency for International Development (USAID) in collaboration with the National Institute of Securities Markets (NSIM) and Crisil sponsored the “Developing India’s Municipal Bond Market” conference today in Mumbai.

The purpose of the conference was to bring together policy makers, investors and urban managers to discuss ways in which bond markets can help raise the funds needed for India’s urban infrastructures, like roads, bridges and water and sewage systems.

Conference participants from Citibank and the U.S. Securities and Exchange Commission noted that in many parts of the world, the bond market is a major source of financing for municipal infrastructure – water and sanitation, urban transport, school and health clinics.

“Deepening India’s Capital Markets: Way Forward,” a collaborative report produced by USAID and NSIM, was released at the conference. The report is based on USAID’s experience providing assistance to the Securities and Exchange Board of India and the Ministry of Finance. It analyzes the key forces driving market momentum and recommends creation of a new self-regulatory regime for investment advisory services and improvements in financial reports to protect investors’ interests.