Sebi chief Tuhin Kanta Pandey backs bond ETFs, tokenisation as debt fundraising nears Rs 9 lakh crore
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims + Mains·
Why in news
SEBI Chairman Tuhin Kanta Pandey advocated for bond ETFs and tokenization to deepen India's debt market as it approached a ₹9 lakh crore raise in FY26.
Background
India's debt market raised nearly ₹9 lakh crore in FY26, nearly double the equity market's total. SEBI is exploring bond ETFs, stronger disclosures, and tokenization pilots to reduce reliance on bank-led financing.
Facts for Prelims
- FactIndia's debt market raised nearly ₹9 lakh crore in FY26.
- BodySEBI (Securities and Exchange Board of India) is the regulatory body overseeing the debt and equity markets.
- S&TTokenization is being explored by SEBI as a method for debt fundraising and asset management.
- FactThe debt market raise in FY26 was almost double the amount raised by the equity market.
For Mains
Q. Discuss the significance of deepening the corporate bond market in reducing India's reliance on bank-led financing for long-term economic growth.
Dimensions to cover in your answer
- Market liquidity: Enhancing retail participation through Bond ETFs to diversify investor base
- Technological integration: Utilizing tokenization to improve transparency and accessibility in fixed-income products
- Regulatory evolution: Balancing innovation in debt fundraising with emerging market risks
Keywords: Capital Market Deepening · Debt Financing · Tokenization · Retail Participation · Financial Inclusion
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