Importance of making corporate bonds more accessible

By making corporate bonds more accessible, Sebi aims to boost India's corporate bond market, which is relatively smaller compared to global counterparts. The proposal to lower the face value of corporate bonds is expected to attract more retail investors and increase participation in the market. This growth could benefit companies and government entities by enabling them to raise capital for infrastructure expansion without solely relying on banks. While it may shift some burden to retail investors, it presents an opportunity for higher returns and reduces the pressure of NPA's on banks. However, the proposal is currently in the consultation paper stage and awaits feedback from stakeholders.