The Reserve Bank of India is considering issuing bonds with maturity period of 20 years and above as part of efforts to encourage long-term savings through insurance and pension schemes. Insurance Regulatory and Development Authority chairman N Rangachary, who is part of the high-level committee, chaired by RBI governor, said the long-term bonds are also intended to reduce possibilities of asset-liability mismatches of financial companies.
Speaking at the India-EU Business Summit, the IRDA chief said there was no need for a "super regulator" now, as the HCL on capital market was working in close coordination. The HCL on capital market comprises members from RBI, SEBI, IRDA and the ministry of finance. Rangachary said the multi-regulatory system prevalent in India at present "needs to be experimented with" before the country thinks of creating a super regulator.
Citing the examples of the UK and Australia, where the super regulator concept has not been as successful as desired, Rangachary said: "Let us first experiment with the existing set up, give it some time and see how well it can function". Bureau Report