The security receipts (SRs) to be issued by the National Asset Reconstruction Company (NARCL), which will carry a government guarantee, should get investment-grade status to attract investments from mutual funds (MFs) and insurance companies. This, say ARC executives, will help unlock value and nurture the secondary market trading in these financial instruments.

       At present, banks and financial institutions hold most of these SRs till maturity. The NARCL's receipts will carry a sovereign cover, offering investment safety comfort. This should make receipts eligible to ...