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SEBI, RBI working to start corporate bonds derivatives, up liquidity - Pandey
This story was originally published at 12:45 IST on 8 June 2026
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--SEBI Chair: War in West Asia continues to affect inflation, trade
--CONTEXT:SEBI Chair Tuhin Kanta Pandey's comments at ICICI Securities event
--SEBI Chair:Aim for optimum regulations to protect investors, enable growth
--SEBI Chair: Working with RBI to introduce derivatives on corp bond indices
--SEBI Chair:Working group discussing framework to up liquidity in corp bonds
--SEBI Chair: Reviewing variable net worth requirement for stock brokerages
MUMBAI – The Securities and Exchange Board of India is in discussions with the Reserve Bank of India to introduce derivatives of corporate bond indices, Chairman Tuhin Kanta Pandey said at ICICI Securities' "India Investor Conference 2026". Pandey also said the market regulator is working to increase the liquidity in the corporate bonds market.
"In perseverance of budget announcement, the working group is sorting out operational details to introduce market making framework to improve liquidity in corporate bond market," Pandey said. "Additionally, SEBI and RBI are working together to introduce derivatives on corporate bond indices... Easier access for global capital."
In 2025-26 (Apr-Mar), corporate bond issuances exceeded INR 9 trillion and the market capitalisation has grown from 69% of GDP a decade ago to about 128% now, Pandey said.
Pandey said while the ongoing war in West Asia continues to affect inflation and trade, exchange rates, and external balances, India stands out for its resilience. "India remains one of the fastest growing major economies with growth estimated at 7.7% in FY26," he said. However, the chairman said India' growth alone will not create prosperity to the economy. "Growth must translate into opportunity, opportunity into investment and investment into wealth creation. This is where capital markets play a defining role."
Financial markets should aim for optimum regulation that protects investors and require a framework that balances ease of access, efficiency, and trust, the chairman said. "At the regulatory level, our approach has been consistent. Optimum regulation that protects investors, preserves market integrity and enables growth."
The market regulator is reviewing the framework for variable net worth requirements for stock brokers so that capital requirements will reflect better operational scale and risk, Pandey said. "We are examining improvements in price discovery particularly through the pre-open call auction mechanism for IPOs and realistic securities to ensure more stable and efficient market openings," he said. End
Reported by J. Navya Sruthi and Anshul Choudhary
Edited by Deepshikha Bhardwaj
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