- Wealth PMS
Remember Inflation Indexed Bonds?
Oh, wait, they’re not.
RBI thought they’d sell 1,000 cr. of bonds today. They even got underwriters and will pay them Rs. 9.8 cr. for the privilege. And they got bids, oh, they got some serious bids, for upto 2,000 cr.
But they really didn’t like what they saw, so they decided not to accept any bids.
This is the problem in having the bank regulator work as the merchant banker for the government.
We really need to have a crowbar separation between all these roles. Note: My conjecture is just based on a hunch; the real reason may be well different. However, having to wear multiple hats muddies RBI’s role in the process.