Investors not keen on pvt sector, PSU bonds

INVESTORS do not seem to be very interested in the bonds of private sector companies and public sector units (PSUs), according to a study by the Society for Capital Market Research and Development. The study found that a mere six per cent of the people surveyed expressed interest in buying private sector bonds.

The interest in PSU bonds was a little higher at 19 per cent. It gathered that the bonds of domestic financial institutions (DFIs) such as IDBI were the most popular among investors and that bank fixed deposits, Government savings schemes and mutual funds were favourites among investments of retail investors. The study added that the present situation called for strong official initiatives for the introduction of radical reforms in corporate governance. -- BL Research Bureau