Reserve Bank of India Governor Sanjay Malhotra pointed out recently that the total flow of credit from non-bank sources had increased by ₹4.3 lakh crore in 2024-25, helping mitigate the impact of slowing bank credit to the private sector. With the corporate bond market being one of the key components of non-bank funding, it is well that SEBI is aiding the RBI in trying to improve activity in this segment. Two consultation papers recently released by SEBI are focused on encouraging more companies to tap the bond market.

Despite continued efforts by regulators over the years, corporate bond market remains illiquid with very meagre activity. This is because both finance and non-finance companies prefer the private placement route for bond issuances, as it is quicker and easier to close. But

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