SEBI currently mulling changes to deepen debt markets, make it more accessible: Chairman Tuhin Kanta Pandey
(ANI Photo)The Securities and Exchange Board of India (SEBI) is currently exploring a host of measures to deepen the debt markets and improve the market architecture to make it more accessible for the retail audience, Chairman Tuhin Kanta Pandey said on Tuesday. Labeling the corporate bond market as the economy’s “second engine” for credit, Pandey said a deeper bond market is essential for financing economic growth. “India’s financing model for businesses is still predominantly bank-led. A growing economy needs patient debt capital – for infrastructure, capacity expansion, refinancing, and long-gestation projects. It needs price discovery across tenures and credit profiles. That is why the corporate debt market is central to India’s journey of sustained economic growth,” said Pandey. He was speaking at CareEdge Ratings’ Debt Summit in Mumbai.SEBI is mulling a host of changes to the debt-market architecture to simplify it and make it more accessible. The regulator is currently exploring a pilot to tokenize corporate bonds, which would involve converting traditional corporate bonds into smaller and more accessible digital tokens. “The pilot will test whether tokenization can deliver faster settlement, better traceability, automated servicing, and greater transparency. We must move carefully – but we must remain open to useful innovation,” the SEBI chair said.
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