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Sebi Eyes Bond ETFs, Derivatives to Boost Debt Market
27 May
Summary
- Sebi plans bond ETFs and derivatives to deepen the debt market.
- Corporate bonds outstanding grew from ₹17.5 lakh crore to ₹59 lakh crore.
- A pilot for tokenizing corporate bonds using digital ledger is being explored.
The Securities and Exchange Board of India (Sebi) is actively working to deepen the nation's corporate debt market and increase investor involvement. Chairperson Tuhin Kanta Pandey announced plans to develop bond exchange-traded funds and derivatives tied to corporate bond indices, which are expected to boost liquidity and enable retail investors to access debt markets with smaller investments.
Sebi is also reviewing Listing Obligations and Disclosure Requirements for pure debt-listed entities, potentially relaxing some compliance obligations. This review aims to reduce costs and entry barriers for dedicated debt market intermediaries. The regulator is also considering a pilot project for tokenizing corporate bonds using digital ledger technology.
Corporate bonds outstanding have surged from approximately ₹17.5 lakh crore at the end of FY15 to over ₹59 lakh crore currently, indicating robust growth. Sebi's initiatives, including exploring new products and tokenization, are geared towards enhancing diversity, liquidity, and wider participation in the market.
