Sandeep BadadAIR 82 · CSE 2025 · 151 wordsTheir whole copy
Opening · a figure
Corporate bond market is pegged at ~ 12% in India compared to > 80% in debt market.
Body · points and prose
- Bar chart comparing Corporate Bond market percentage:
- Y-axis: Percentage
- X-axis: Regions (India, USA, EU)
- India: 12%
- USA: 80%
- EU: 47%
Potential
- huge household savings (29%)
- Higher returns than any other deposit (upto ~ 10%)
- Available in small denominations (~ 1000 Rs)
Underdeveloped
- Distrust due to corporate frauds (eg Yes bank)
- Trust in govt institutions (eg DGCI Fraud)
- Accessibility channels are low unlike KVP, LIC etc
- low public awareness
Challenges : Structural & Regulatory (1) Focus on debt market and stock market by SEBI
(2) Inadequate channels of issuance → Through bank / DMAT only
(3) Restriction of Corporate over size of fund raising through CBs.
(4) Constraints by higher compliance norms and audit compliance in case of bonds
(5) Reliance of corporates on debt due to ease of access.
* wayforward
* Awareness and promotion through accessible channels like ETF (1000 per bond)
* Create digital platform like (Trading platform)
* Strengthen & Rationalize regulatory framework
Close · a vision
Corporate bonds can mobilize huge capital which is crucial for the investment hungry India marching towards 2047 vision.