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Informist, Friday, Sept. 19, 2025

 

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--SEBI Narayan:Need to nudge investor interest towards lower-rated corp bonds 
--CONTEXT: SEBI whole-time member Ananth Narayan's comments at an event 
--SEBI Narayan: Need to popularise trading in corporate bonds 
--SEBI Narayan: Should have equity mkt like efficient trading of corp bonds 
--SEBI Narayan: Should build corp bond indices with derivative trading 
 

 

MUMBAI – There is a need to develop the corporate bond market by building derivative products for indices, said Ananth Narayan, a whole-time member at the Securities and Exchange Board of India, at an event in Mumbai Friday. He urged policymakers, exchanges, and market participants to come together to address the objectives of sustained capital formation. Narayan also said there is a need for widening investor participation, especially towards lower-rated debt.  

 

Narayan further said that there is a need to broaden investor appetite beyond top-rated papers. Most of the flows are concentrated in 'AAA' or highly-rated corporate bonds. But for companies across the entire rating spectrum to benefit, there is a need to gradually nudge investor interest towards lower-rated corporate bonds too, he said.

 

"We are building corporate bond indices to encourage derivative trading in them... we are now working with other regulators to see how we can actually popularise trading in corporate bond indices, which might lead to more awareness around them," Narayan said. 

 

Narayan said India must work towards making the corporate bond market as liquid and efficient as the equity market. "Indian capital markets have made solid progress, but we have miles to go... if we want markets that are stable, deep, and resilient, we must build a corporate bond market that truly complements the equity market," Narayan said. 

 

Narayan said that alternative asset classes such as infrastructure investment trusts, real estate investment trusts, and commodities are crucial in building a balanced financing ecosystem that aligns with India's growth ambitions, as domestic investors' risk appetite has grown significantly End

Reported by Vaishali Tyagi and Kabir Sharma

Edited by Tanima Banerjee

 

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