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Journalism of Courage
The RBI proposes to reintroduce capital indexed bonds CIB with inflation linked returns to deepen the government securities market.
In December 1997,
6 pc CIB of 5-year tenure was initially introduced and now it has been proposed, in consultation with the government, to reintroduce a modified CIB with structured features of similar instructions prevalent internationally, RBI said in a discussion paper on CIB released here. Subsequent to that issuance, there was no further issuance of CIB mainly due to lack of enthusiastic response of market participants for the instrument, both in primary and secondary markets, it said.
