深化印度公司债券市场

DECEMBER 2025 CORPORATE BONDMARKET CORPORATE BOND MARKET CORPORATE BOND MARKET CORPORATE BOND MARKET Executive Summary India’s ambition to become a higher-income country by 2047,Viksit Bharat,requiresa financial system that can mobilise long-term and low-cost capital efficiently tosustain high investment and inclusive growth. In this context, a deep and vibrantcorporate bond market is indispensable to complement the banking system, reducesystemic concentration risks, and provide a stable source of long-term financingfor infrastructure, industry, climate actions and emerging sectors. A well-developedcorporate bond market can play a pivotal role in achieving a balanced, resilientfinancial architecture by expanding funding avenues, lowering borrowing costs,and strengthening the transmission of monetary policy. This report presents acomprehensive assessment of India’s corporate bond market, its evolution, presentstructure, challenges, and policy measures, while benchmarking its performanceagainst global peers to identify pathways for further deepening and diversification.It seeks to establish how a well-functioning corporate bond market can serve as akey lever for financing India’s development ambitions and enhancing the resilienceof its financial ecosystem. Over the past decade, India’s corporate bond market has expanded significantly,with outstanding issuances rising from₹17.5 trillion in FY2015 to₹53.6 trillion inFY2025, recording an annual growth rate of nearly 12 per cent. The market nowaccounts for around 15–16 per cent of GDP, a considerable improvement, thoughstill well below the levels seen in countries like South Korea, Malaysia, or China.Encouragingly, corporate bond fundraising is increasingly on par with bank credit,underscoring growing investor confidence and the gradual shift toward market-based financing. However, the bond market remains concentrated among top-ratedissuers, with private placements dominating issuance and limited participation fromMSMEs, retail investors, and foreign portfolio investors. This structural imbalanceconstrains access to affordable capital for smaller firms and reduces overall marketliquidity. A well-developed corporate bond market channels institutional and householdsavings into productive sectors, supports efficient price discovery through a robustyield curve, and facilitates the development of risk management instruments suchas credit derivatives and securitisation. Yet, several challenges continue to constrainits growth. Regulatory overlaps between multiple authorities, extensive disclosurerequirements, and procedural delays discourage broader participation. The secondarymarket remains shallow, with limited liquidity and price transparency. Institutionalinvestors, such as insurance companies and pension funds, are constrained byinvestment norms that limit exposure to lower-rated securities. In addition, weakdebt recovery mechanisms, high transaction costs, and tax asymmetries reduceinvestor appetite and restrict the flow of long-term capital. These structural frictionscollectively impede the corporate bond market from realising its full potential as anengine of capital formation and financial inclusion. Cross-country analysis in this report reveals that economies with vibrant corporatebondmarkets,such as the United States,Singapore,South Korea,and somedevelopingcountries,such as Thailand,have successfully combined coherentregulation,strong market infrastructure,and deep secondary markets,andtargeted fiscal incentives to build depth and diversity. These markets demonstratehow streamlined disclosure systems, efficient credit enhancement mechanisms,and active market-making can foster liquidity, attract a broad investor base, andpromote financing. India’s policy and regulatory authorities have already made significant strides inthis direction. SEBI has introduced electronic trading through the Request forQuote (RFQ) platform, facilitated retail access through online bond platforms,strengthenedgovernance standards for credit rating agencies and debenturetrustees,and simplified issuance norms.The RBI has enhanced settlementarchitecture, introduced tri-party repos and credit default swaps, and supportedthe development of repo and clearing mechanisms. Additionally, the Governmenthas promoted Infrastructure Investment Trusts (InvITs), Real Estate InvestmentTrusts (REITs), and green finance initiatives to encourage long-term investment anddeepen capital markets. Collectively, these reforms have laid a strong foundationfor a more transparent, accessible, and technology-driven bond market ecosystem. Tounlock the full potential of the bond market,the report underscores theimportance of a sequenced, sustained reform strategy implemented through aphased approach. In the initial phase, efforts focus on streamlining regulations andprocedures, enhancing coordination among regulators, and improving legal clarity.Simultaneously, strengthening market infrastructure, through