In a recent question-and-answer session, the SEBI chief said the regulator analyzes the derivatives markets in a completely data-driven and systematic manner. He stressed that we are not considering any new measures. The regulatory framework that exists will continue. Along with this, Pandey also dismissed rumors of abolishing weekly expiry contracts and said that no such change has been discussed yet.

Emphasis on India’s underutilized bond market

Pandey spoke at length on the role of India’s bond market at the inaugural session of the ‘Pan-India Outreach Program for Corporate Bonds’ organized by SEBI. He said bank credit alone is not enough to meet the needs of the fast growing economy, capital markets have to lead this growth.

He stressed the need for a strong banking system as well as clean, liquid and reliable capital markets to provide long-term finance for infrastructure, green transition, manufacturing and services sectors.

According to the SEBI chief, India is among the world’s fastest growing major economies with an average of 7.8% quarterly GDP growth over the last three years, while growth for FY2026 is estimated at 7.4%.

Corporate bond market statistics and challenges

• Describing the state of the corporate bond market, Pandey said that in FY 2025, issuers are expected to raise about Rs 10 trillion through debt issues.




• Between April and December 2025, this figure was approximately Rs 6.8 trillion.




• Outstanding corporate bonds have grown at a compound annual rate (CAGR) of 12% over the past decade, from Rs 17.5 trillion in FY2015 to Rs 58 trillion by December 2025.




• This accounts for about 60% of bank credit given to industry and service sectors.




• However, he also underlined that outstanding corporate bonds in India are only 16% of GDP, which is much lower than South Korea (79%), Malaysia (54%) and China (38%).




• Additionally, despite more than 5,600 equity-listed companies, only 770 entities have raised capital through the debt market, of which only 272 have issued bonds more than once.

Lack of awareness among investors

Pandey also described lack of awareness among investors as a big challenge. Citing SEBI’s investor survey, he said only 10% people are aware of corporate bonds as an investment product, which is less than deposits, insurance, small savings schemes and even cryptocurrencies (15%).

He cited the benefits of a developed corporate bond market, saying it provides an alternative to bank loans, diversifies risks and can help reduce the cost of capital for companies.

Prospects on Municipal Bonds

Regarding municipal bonds, SEBI chief said that there is a lack of awareness in this area also. At present the number of bonds issued by municipalities is very limited, so far only 12 have been issued. However, according to the budget announcements, the government will support municipalities in issuing such bonds. Pandey said that even though this market is still at a nascent and almost negligible stage, it has huge potential in the future and the regulatory framework for it is developing rapidly.