New Delhi, Feb. 1 -- During the presentation of the Union Budget 26-27, the Finance Minister, Nirmala Sitharaman, proposed to introduce a market-making framework with suitable access to funds and derivatives on corporate bond indices. She also proposed introducing total-return swaps for corporate bonds.

"To encourage the issuance of municipal bonds of higher value by larger cities, I propose an incentive of Rs 100 crore for a single bond issuance of more than Rs 1000 crore," The Minister said.

"The current scheme under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which incentivises issuances up to Rs 200 crore, will also continue to support smaller and medium towns," Sitharaman noted.

Earlier, the Finance Minister of...