Corporate Bond Market in India: Size, Issues, Challenges, and Analysis

This report provides a comprehensive analysis of the corporate bond market in India. It begins by examining the size of the bond market in India relative to global standards, highlighting the dominance of government securities and the relatively smaller size of the corporate bond market. The report then delves into the types of corporate bonds, including secured, unsecured, and convertible bonds. It explains the processes involved in issuing corporate bonds, both through public issues and private placements. Furthermore, the report identifies key issues and challenges, such as lack of transparency, narrow investor base, illiquidity, inefficient price discovery, and high borrowing costs. It also explores the trading of corporate bonds, listing procedures, settlement timings, and who can trade. The report concludes with key takeaways, emphasizing the need for growth and diversification in the corporate bond market to improve its size and liquidity.