SEBI to consult stakeholders on budget bond reforms, plans corporate bond derivatives

SEBI Chairman Tuhin Kanta Pandey said the regulator will engage market participants on implementing Budget proposals for the bond market, while also moving to introduce derivatives on corporate bonds to strengthen investor risk management and deepen India’s debt markets.

Stakeholder-Led Reform Approach

The Securities and Exchange Board of India (SEBI) will hold consultations with stakeholders as it works to roll out bond market measures announced in the Union Budget. The initiative reflects a collaborative regulatory approach aimed at building a more robust and efficient corporate debt ecosystem.

Initiative Details

Engagement Focus Budget bond market proposals

Stakeholder Consultation Industry-wide participation

Regulatory Approach Collaborative implementation

Corporate Bond Derivatives in Focus

Strategic Push for Bond-Led Financing

SEBI’s broader vision is to position bonds as the primary channel for corporate fundraising, reducing overreliance on bank credit and equity markets. Strengthening the bond market infrastructure is central to creating diversified funding avenues for Indian companies.

Market Impact

The dual strategy of policy consultation and product innovation is expected to:

Deepen corporate bond market participation

Enhance risk management mechanisms

Improve market liquidity

Support long-term capital formation