Ahmedabad Times

Sebi chief Featured Track Seaside on Monday known as for stronger growth of India’s company bond marketsaying a fast-growing economic system wants a deeper debt ecosystem to help long-term capital necessities alongside the banking system.

Talking on the CareEdge Debt Market Summit, Sebi chairman stated India’s debt market is rising as a serious supply of capital elevating and has already seen fundraising of almost Rs 9 lakh crore in FY26.

“In FY26, debt market fund elevating has touched almost Rs 9 lakh crore, nearly double that of the fairness market,” Pandey stated. He added that India’s rising economic system requires affected person debt capital and a robust bond market as a “second engine of credit score progress.
Pandey stated extra issuers want to begin viewing the company bond market as a daily and dependable supply of funding as a substitute of relying totally on banks. He additionally stated Sebi’s job is evident to construct a deeper debt market.
The feedback come at a time when policymakers are more and more pushing for diversification of India’s monetary system past conventional bank-led lending, significantly as infrastructure financing and long-duration capital necessities proceed to rise.

Pandey stated almost Rs 7 lakh crore had flowed into India’s capital markets in FY25, highlighting the rising significance of market-based financing. He additionally burdened that additional regulatory measures could be wanted to strengthen the debt market ecosystem.
Extra measures are wanted to additional strengthen the debt market as a key avenue for capital elevating, he stated.
Sebi chairman stated regulation can’t stay static and should evolve repeatedly with rising dangers and altering market constructions.
Among the many initiatives into consideration, Pandey stated Sebi is engaged on creating exchange-traded funds linked to bonds to enhance retail participation and accessibility in fixed-income merchandise. He additionally stated the regulator is reviewing whether or not listed debt securities require disclosure requirements just like these relevant to listed equities.

“Company bonds can supply diversification, however not risk-free,” Pandey stated, cautioning buyers towards viewing debt devices as fully secure merchandise.

The regulator additionally plans to enhance investor consciousness round fixed-income merchandise. In response to Pandey, bonds will appeal to retail buyers provided that buyers correctly perceive the merchandise and related dangers.

To enhance participation and consciousness, Sebi and inventory exchanges will conduct outreach programmes focused at bond issuers and market individuals. Pandey additionally revealed that the regulator is exploring pilot tasks round tokenisation of company bonds, signalling rising regulatory curiosity in blockchain-linked market infrastructure.

Tokenisation refers to changing possession of economic property into digital tokens that may probably enhance buying and selling effectivity, transparency and settlement processes. India’s company bond market has traditionally remained smaller than many developed economies regardless of fast progress in fairness markets and banking property.

Market individuals have lengthy argued {that a} deeper bond market is important to finance massive infrastructure tasks, power transition investments and long-term industrial enlargement with out placing extreme stress on banks.

The push towards debt market reforms additionally comes as India continues to witness sturdy home investor participation throughout monetary property, together with mutual funds, equities and fixed-income merchandise.