Debenture Season

THE Reserye Bank.has appointed a working group to examine the question of developing a secondary market for debentures which have of late become a growing source of finance for the corporate sector. A notable aspect of the Reserve Bank's monetary policies recently has been an attempt to replace discretionary controls with such non-discretionary instruments as interest rates. Reserve Bank has also moved in the direction of subjecting the nationalised banks to competition by encouraging the corporate sector to mobilise resources directly from the market through the medium of convertible and other debentures and through acceptance of public deposits.