June 8: The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are jointly working on developing corporate bond index derivatives as part of efforts to deepen India’s debt market.
The initiative aims to improve liquidity, enhance price discovery, and provide investors with better tools to manage risk in the corporate bond segment. Officials said that index-based derivative products could help make the bond market more efficient, transparent, and attractive to a wider set of investors.
Tuhin Kanta Pandey said the collaboration between SEBI and RBI is important for strengthening financial markets and supporting long-term capital formation. He added that a stronger corporate bond market will play a key role in financing economic growth and infrastructure needs.
The move is also expected to increase institutional participation and reduce reliance on traditional bank lending for corporate funding. Market observers believe that such instruments could gradually improve depth and activity in India’s debt markets.
Regulators are currently working on the framework, including product structure, safeguards, and implementation guidelines before a formal rollout.
The initiative is part of India’s broader effort to modernize financial markets and align them with global practices while maintaining stability and investor protection.
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