Need enabling framework to help cos issue ESG bonds locally: RBI official

There is a need to create an "enabling framework" to help Indian companies issue environmental, social and governance (ESG) bonds locally, a senior RBI official said on Friday.

Underlining that capital markets regulator Sebi which looks after the regulations for the bond markets has done significant work, Dimple Bhandia, the chief general manager in RBI, also rued that the development in the repo for corporate bonds has not been satisfactory.

"...we find that lot of our companies are going overseas and issuing ESG bonds. This is an area where we need to look at an enabling framework," Bhandia said, speaking at an event organized by industry lobby grouping Assocham here.

Another disappointment has been the "non-starter" credit derivatives market, she said, recalling that very limited number of trades have taken place in it.

She, however, said that the overall secondary market activity in corporate bonds is not as bad as one would think.

Bhandia said even though its base is lower,