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Bond market is set for a take-off

Money ControlMoney Control · 1m
Bond market is set for a take-off

The Indian financial market is experiencing a shift towards Non-Convertible Debentures (NCDs) as a means of raising capital. This move is driven by tightening lending norms and the need for diversified sources of funding. NCDs offer a way for companies to raise long-term funds outside of traditional banking limits and have been facilitated by the rise of Online Bond Platform Providers (OBPPs), which have increased accessibility to the bond market for retail investors. Additionally, the inclusion of Indian fixed income in global indices has increased demand for bond products, while the growth of the NCD market has broader implications for India's economic expansion and infrastructure projects. However, there are challenges to be addressed, such as category awareness and liquidity in the secondary market. Efforts to overcome these challenges will help solidify the role of NCDs in India's financial future.

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