India’s corporate bond market has reached a total value of 61.5 lakh crore rupees, according to the latest data released by Securities and Exchange Board of India (SEBI). The data indicates that more domestic companies are raising funds directly from the capital markets instead of relying solely on traditional bank loans.
The report also points to a shift in the credit profile of newly issued corporate bonds. The share of top-rated triple-A bonds has declined to 66 per cent, while the volume of lower-rated bonds has increased.
Large institutional investors are showing greater interest in these bonds to earn higher returns, particularly from non-banking financial companies. Meanwhile, direct mutual fund plans will become the default option on digital platforms from 1st of next month.
The move aims to help individual investors access mutual funds with lower expense ratios. Recent data also indicates a slowdown in individual participation in high-risk equity derivatives trading.
Must Read
- Advertisement -
