SynopsisSebi chairman Tuhin Kanta Pandey called for deeper development of India’s corporate bond market to support long-term economic growth. He highlighted rising debt fundraising, proposed bond ETFs, stronger disclosures and tokenisation pilots, while urging greater retail participation and reduced dependence on bank-led financing.ETMarkets.comSebi chief Tuhin Kanta Pandey on Monday called for stronger development of India's corporate bond market, saying a fast-growing economy needs a deeper debt ecosystem to support long-term capital requirements alongside the banking system.Speaking at the CareEdge Debt Market Summit, Sebi chairman said India's debt market is emerging as a major source of capital raising and has already seen fundraising of nearly Rs 9 lakh crore in FY26."In FY26, debt market fund raising has touched nearly Rs 9 lakh crore, almost double that of the equity market," Pandey said. He added that India's growing economy requires patient debt capital and a strong bond market as a “second engine of credit growth.Pandey said more issuers need to start viewing the corporate bond market as a regular and reliable source of funding instead of depending entirely on banks. He also said Sebi's task is clear to build a deeper debt market.The comments come at a time when policymakers are increasingly pushing for diversification of India’s financial system beyond traditional bank-led lending, particularly as infrastructure financing and long-duration capital requirements continue to rise.Pandey said nearly Rs 7 lakh crore had flowed into India’s capital markets in FY25, highlighting the growing importance of market-based financing. He also stressed that further regulatory measures would be needed to strengthen the debt market ecosystem.More measures are needed to further strengthen the debt market as a key avenue for capital raising, he said.Sebi chairman said regulation cannot remain static and must evolve continuously with emerging risks and changing market structures.Among the initiatives under consideration, Pandey said Sebi is working on developing exchange-traded funds linked to bonds to improve retail participation and accessibility in fixed-income products. He also said the regulator is reviewing whether listed debt securities require disclosure standards similar to those applicable to listed equities."Corporate bonds can offer diversification, but not risk-free," Pandey said, cautioning investors against viewing debt instruments as completely safe products.The regulator also plans to improve investor awareness around fixed-income products. According to Pandey, bonds will attract retail investors only if investors properly understand the products and associated risks.To improve participation and awareness, Sebi and stock exchanges will conduct outreach programmes targeted at bond issuers and market participants. Pandey also revealed that the regulator is exploring pilot projects around tokenisation of corporate bonds, signalling growing regulatory interest in blockchain-linked market infrastructure.Tokenisation refers to converting ownership of financial assets into digital tokens that can potentially improve trading efficiency, transparency and settlement processes. India's corporate bond market has historically remained smaller than many developed economies despite rapid growth in equity markets and banking assets.Market participants have long argued that a deeper bond market is necessary to finance large infrastructure projects, energy transition investments and long-term industrial expansion without putting excessive pressure on banks.The push toward debt market reforms also comes as India continues to witness strong domestic investor participation across financial assets, including mutual funds, equities and fixed-income products.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless