“It will be a little selfish to say, with regards to LIC, when multiple regulators are there, there are certain issues. Some issues will be process-related and some policy-related,” Mohanty said at an event organised by State Bank of India. “Like a small issue, suppose the CRILC (Central Repository of Information on Large Credits). I am the largest participant in the debt market (but) I have no access. My assessment and appraisals (are) on the basis of whatever public domain reports are there. So, I would be happy if we are given access to CRILC.”
The RBI’s department of supervision handles the CRILC, which stores data on credit exposures of all borrowers. Noting that insurance firms’ investments are highly regulated, Mohanty said new asset classes such as sovereign gold bonds should be made available for insurers to invest in, which would improve market liquidity. “Similarly, long-term paper (bonds), they (the RBI) have helped us. Earlier we got some 40-year, 50-year papers but more such papers will be required because our asset-liability management, our liabilities are long-term,” he said.
In FY24, the government issued a 50-year bond for the first time. Centre and RBI took the step after requests from insurers for longer-maturity sovereign debt. Insurers have shown firm demand for longer-dated government bonds over the past year and a half, with their buying interest keeping yields on such securities anchored amid rate hikes by the RBI and heavy supply of bonds.
Mohanty also requested the establishment of a framework that would provide for regular interaction between all regulators and market participants.
“They (market participants) should also directly discuss, plead their case so that I think many issues can be resolved,” he said.