ENA Sectors 2025-12-12 16:54:14 <p><span style="font-size:14px"><strong>New Delhi, Dec 12 (KNN)</strong> NITI Aayog CEO B.V.R. Subrahmanyam on Thursday released a detailed report titled Deepening the Corporate Bond Market in India in New Delhi, outlining a roadmap to strengthen Indias long-term financing ecosystem.</span></p> <p><span style="font-size:14px">Subrahmanyam underscored the importance of a stronger corporate bond market in advancing Indias Viksit Bharat vision, noting that deeper and more efficient capital markets are essential for mobilising long-term funds at scale. </span></p> <p><span style="font-size:14px">This report underscores how a deeper and more efficient corporate bond market will be central to enabling that transition by expanding market access, improving liquidity, and strengthening investor participation, he said.</span></p> <p><strong><span style="font-size:14px">Assessment of Market Gaps</span></strong></p> <p><span style="font-size:14px">The report provides an in-depth review of the current landscape of Indias corporate bond market, highlighting structural challenges that restrict its depth and vibrancy. </span></p> <p><span style="font-size:14px">Despite steady growth over the past decade&mdash;reflected in rising outstanding issuances, regulatory improvements and greater investor interest&mdash;the market continues to face hurdles such as limited liquidity, a narrow investor base, and subdued secondary market activity.</span></p> <p><span style="font-size:14px">Noting the significant untapped potential, the study points to the opportunity for corporate bonds to play a larger role in financing infrastructure, MSMEs, green and transition projects, and emerging sectors.</span></p> <p><strong><span style="font-size:14px">Reform Recommendations</span></strong></p> <p><span style="font-size:14px">The recommendations outlined in this report offer a practical blueprint for improving capital market transparency, widening the investor base, supporting lower-rated issuers, and modernising market infrastructure in line with global practices, Subrahmanyam said.</span></p> <p><span style="font-size:14px">Drawing on global best practices, the report proposes a sequenced set of reforms to strengthen legal and regulatory frameworks, enhance market infrastructure, and improve transparency. </span></p> <p><span style="font-size:14px">Key priorities include enabling greater issuance by mid-size companies, increasing participation from insurance, pension and retail investors, and expanding the range of instruments&mdash;including credit-enhanced bonds, long-tenor securities and sustainability-linked products.</span></p> <p><span style="font-size:14px">It also recommends measures to boost liquidity through stronger market-making and repo facilities, along with leveraging digital tools such as tokenised bonds and integrated data systems.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44401 https://knnindia.co.in/news/newsdetails/sectors/corporate-bond-market-depth-crucial-for-liquidity-investor-participation-niti-aayog-ceo 2025-12-12 16:54:14 knnindia.co.in