Both segments, equity and debt, are crucial for development of entire markets and growth of debt segment was an area of focus for the market regulator, SEBI chairman G N Bajpai said addressing a conference 'Emerging Securities Market' organised in association with ICFAI in Mumbai.
SEBI would address the issues relating to debt market for this and next year, he added. Referring to challenges for growth of market, Bajpai said market integrity, risk management and corporate governance are crucial for attracting investments.
The market should work in an orderly manner with support of clearing and settlement systems and surveillance, he said.
The global fund managers who are looking for higher returns, have made large investments in India, he said, adding they would remain so as long as returns are that level or grow.
If, they (returns) stagnate or are low, the fund managers would look for other investment destinations, raising issues of risk management, he said.
Corporate governance, including role of independent directors had a major influence on the valuation of stocks, he added. Bajpai said the Indian economy was poised for sustained high economic growth due to contribution of younger population.
The consumer demand for products and services and higher productivity would improve efficiency to push economic growth, he said.
The economic dependency, as reflected in the number of dependents per earning member, was slated to decline by 0.14 per cent to 1.48. This would raise the savings rate from 24 per cent to 39 per cent, he added.