"We are in touch with Finance Ministry and SEBI on the issue of developing corporate debt market," RBI Governor Y V Reddy told reporters after the release of quarterly review of credit policy.

He emphasised that the R H Patil Committee on corporate debt, which submitted its report in 2005, needs to be implemented for developing the trading in corporate debt market.

Finance Minister P Chidambaram during his last Budget had announced to take measures to develop the corporate debt market.

Reddy said "highest priority" should be given to the develop the corporate debt market. The repo rate should be inclined with the corporate debt market, he said adding that RBI was looking into the "whole monetary framework" in view of the changing economic scenario.

"Time has come when integrated approach needs to be followed," said the RBI governor while referring to the increasing integration of the Indian economy with global economy.

Notably, inspite of limited corporate debt instruments, the India Inc raised around Rs 80,000 crore in 2006 from the market, which included Rs 59,000 crore by the banks.

The rise in Indian external debt has also been influenced by the borrowing by the India Inc from the foreign markets.

Cautioning the corporate sector against volatility in international market, Reddy said they should be ready for "fast" changes in the international market.