Mumbai: The Securities and Exchange Board of India is working to develop bond ETFs and derivatives on corporate bond indices to draw more retail investors into the debt market, SEBI Chairperson Tuhin Kanta Pandey said.
Addressing a debt-market event, Pandey said the move could improve liquidity and let retail investors enter debt markets with smaller ticket sizes. Institutions would also be able to hedge interest-rate risks using the new products.
“We are working towards further developing bond ETFs and derivatives on corporate bond indices,” Pandey said. “These can improve liquidity, allow retail investors to access debt markets with smaller ticket sizes, and help institutions hedge interest-rate risks.”
He added that the regulator is exploring a distinct regulatory classification for debt brokers. The proposals aim to deepen India’s corporate bond market and broaden participation beyond institutional players. Retail access to debt has remained limited due to high ticket sizes and low secondary market liquidity.
SEBI has been pushing reforms to make debt instruments more accessible. The introduction of bond ETFs and index derivatives would give investors low-cost, transparent exposure to corporate bonds.
