SEBI Plans Major Bond Market Reforms to Boost Corporate Debt Ecosystem

The Securities and Exchange Board of India (SEBI) is moving ahead with major reforms aimed at strengthening and expanding India’s corporate bond market. As part of its reform strategy, the regulator is planning bond tokenisation pilot projects and introducing a new regulatory framework for debt brokers. These measures are expected to increase participation in the bond market and improve accessibility for both issuers and investors.

SEBI is also evaluating the possibility of easing disclosure norms for debt-only securities issues. This step is likely to make bond-based fundraising more efficient and attractive for companies looking for alternatives to traditional bank financing.

Speaking at a seminar organised by CareEdge Ratings, SEBI Chairman Tuhin Kanta Pandey stated that Indian businesses still rely heavily on banks for raising funds. He emphasized the need for a more developed and diversified bond market ecosystem to reduce the country’s excessive dependence on the banking sector.

At the same time, the SEBI chief cautioned that the bond market carries credit risks and liquidity risks. Therefore, he stressed that the growth of the debt market should go hand-in-hand with stronger governance standards, improved investor awareness, and continuous financial education to maintain long-term stability and investor confidence.