Bond market is also know as Debt market. A debt instrument is used by government
or organization to generate funds for longer duration. The relation between person
who invest in debt instrument is of lender and borrower .This gives no ownership
right .A person receives fixed rate of interest on debt instrument.
If any company or organization want to raise money for long term purpose
without diluting his ownership that it is know as Debentures. These are backed by security so there is no risk involves but return on these instrument is low as compared to shares .Company pay fixed rate of interest on debentures.
If government want to generate funds to meet long term needs like infrastructure it issue bonds know as sovereign bonds which are backed by government security so there is no risk
NARASIMHAM COMMITTEE
A high level committee on Financial System (CFS) was constituted by Government of India in 1991 to examine all aspects relating to structure, organization, function and procedures of the financial system under the Chairmanship of M. Narasimhan.
The Narasimham Committee’s recommendations aimed at
ensuring
A degree of operational flexibility of the banks.
Internal autonomy for Public Sector Banks in their decision making process.
Considerable professionalism in banking operations.