Corporate Bond Market Hits 61 Lakh Crore as SEBI Targets Liquidity
India's corporate bond market reached 61 lakh crore. SEBI is now focusing on secondary liquidity and tokenization.
Key points
- India's corporate bond market reached 61 lakh crore in total value.
- SEBI raised 4.3 lakh crore through corporate bonds in FY2026-27.
- New initiatives include tokenization pilots and a Credit Risk-o-Meter.
India's corporate bond market has expanded to 61 lakh crore. This growth marks a significant milestone in the debt sector's recent trajectory.
SEBI Chairman Rajesh Kumar Pandey stated that 4.3 lakh crore was raised in FY2026-27. He emphasized that volume alone does not create a healthy market.
Regulator shifts focus to market depth
Pandey explained that deeper markets require a wider base of issuers. Better price discovery and stronger secondary-market liquidity are also essential components.
The regulator is developing a comprehensive market-making framework. This initiative aims to improve liquidity and provide better repo access for participants.
New tools boost investor understanding
SEBI launched Demat 2.0 to modernize account management. It also piloted tokenization of bonds on a private distributed-ledger network.
A new Credit Risk-o-Meter is under consultation to simplify risk assessment. This tool aims to make credit data easier for investors to interpret.
Distribution channels expand online
Business Today reported that SEBI is consulting on Fixed Income Channel Partners. These regulated online platforms will widen access to corporate bonds.
The equity market capitalization now stands at approximately 5 trillion dollars. This expansion supports the broader growth of India's capital markets.
