Legislative strategy for setting up an independent debt management agency

Radhika Pandey and Ila Patnaik

Working Papers from National Institute of Public Finance and Policy

Abstract: The Public Debt Management Agency (PDMA) is a body that issues public debt with the objective of keeping long term costs of government borrowing low. In India, the existing legal framework obliges the government to give the task of managing its debt to the RBI. Pursuant to its role as debt manager, RBI set up market infrastructure such as an exchange and a depository. Carve-outs were made in the regulation of securities, to allow the RBI to regulate the bond market. Over the last 20 years, the proposal to establish an independent PDMA has been repeatedly put forward. In this paper, we work out the legal strategy to set up a PDMA. We show the transition path for the roll out and for the movement of the functions, accounts, records and systems to the new agency in a phased manner.

Keywords: Public debt management; Market infrastructure; Market regulation, Government securities (search for similar items in EconPapers)
JEL-codes: H63 H74 K10 L51 (search for similar items in EconPapers)
Pages: 34
Date: 2016-10
New Economics Papers: this item is included in nep-law
Note: Working Paper 178, 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:16/178

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