Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal
bond market
is set for a major revamp with the launch of
Bond Central
, a Sebi- and OBPP-backed platform aimed at creating a centralized, transparent database for bond issuances. The initiative is designed to simplify access to pricing, risk metrics, and disclosures for both retail and institutional investors.
By reducing information gaps and lowering the minimum investment threshold to Rs 10,000, Bond Central is expected to drive greater retail participation, improve price discovery, and align India's bond infrastructure with global standards such as FINRA TRACE.
With the launch of Bond Central, a Sebi-OBPP initiative to aid investors in the fixed-income market,
Vineet Agrawal
, Co-Founder of Jiraaf, shared his insights with ETMarkets:
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Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal
SEBI and OBPP have launched Bond Central, a centralized bond database aimed at boosting transparency and retail participation in India's corporate bond market. The platform offers easy access to pricing, risk metrics, and disclosures, while lowering the minimum investment to Rs 10,000. Experts say it could align India's market infrastructure with global standards and deepen fixed-income penetration.
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What are the primary objectives behind Sebi's initiative with OBPP to launch Bond Central? How does it benefit the fixed-income market in India?
Sebi's stakeholders launched Bond Central to offer a single, centralized database of corporate bond issuances—including listing terms, pricing, risk metrics, and documents—accessible to both retail and institutional investors. By reducing information asymmetry, the initiative aims to foster greater transparency, build market confidence, and drive increased retail participation, which has historically been low.
Could you explain how Bond Central will streamline bond market activities and help investors access bonds more efficiently?
Bond Central aggregates listings from exchanges and issuers, enabling users to discover, compare, and evaluate
bonds
in one convenient location. It includes price comparisons with government securities (G-Secs) and fixed-income indices, supported by disclosures and risk insights. This simplifies decision-making and reduces reliance on multiple platforms.
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How will this initiative enhance liquidity and transparency in the Indian bond market?
By publishing standardized data—including real-time pricing, yield, and credit risk—Bond Central helps reduce opacity in the secondary market. Better visibility supports improved price discovery and attracts more participants, thereby enhancing market liquidity over time.
What impact do you foresee this Bond Central initiative having on retail investors and their participation in fixed-income products?
Lowering the minimum investment threshold from Rs 1,00,000 to Rs 10,000 via OBPP platforms, combined with access to uniform bond information, democratizes market entry for retail investors. This will likely boost retail volumes, deepen market access, and narrow the participation gap between institutional and individual investors.
Can you discuss the potential risks and challenges involved in this initiative and how Sebi and OBPP plan to address them?
Key challenges include ensuring data accuracy, timely updates, and investor awareness of bond risk profiles. Sebi and OBPP aim to mitigate these through standardized disclosures, a strong governance framework under a non-profit model, and targeted investor education campaigns via the platform.
In what ways can this move contribute to the development of a more vibrant corporate bond market in India?
Improved transparency, easier access, and broader investor participation will encourage corporate issuers. As demand from retail investors rises, issuers may increasingly tap into this pool, creating a positive feedback loop. Streamlined issuance and distribution mechanisms will further support market vibrancy.
How does this Bond Central initiative compare to similar initiatives in global markets, and what lessons can India learn from them?
Bond Central aligns with global systems like the U.S. FINRA TRACE, which consolidates post-trade bond data to promote transparency. India can adopt best practices around real-time trade reporting, regulatory oversight, and compliance standards from such mature platforms.
Do you think the introduction of a centralized bond platform will attract more foreign institutional investors (FIIs) to India's bond market? Why or why not?
Yes. FIIs value rich, standardized, and reliable data. A centralized platform reduces market opacity and settlement friction, enhancing India's appeal. That said, FIIs will also consider other factors such as currency risk, regulatory clarity, and ease of capital movement.
What role do digitalization and technological advancements play in making Bond Central a success, and what kind of infrastructure is required to support it?
The success of Bond Central depends on robust digital infrastructure, real-time data feeds from exchanges and depositories, and APIs for seamless OBPP integration. Looking ahead, advanced analytics, AI-driven tools, and investor education features will be key to maximizing its utility.
What advice would you give to investors looking to capitalize on this new development in India's bond market, especially in the context of changing interest rates and inflation?
Utilize transparency:
Compare
corporate bonds
with G-Secs to assess value and risk.
Diversify:
Spread investments across issuers and tenors to manage credit and interest rate risks.
Stay informed:
Monitor repo rate changes (currently 5.5%) and inflation trends.
Match duration:
Align bond maturity with your investment horizon and liquidity needs.
Use tools:
Leverage Bond Central's analytics and disclosures for informed decision-making.
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