1 week ago
Greater Awareness and Participation Seen Boosting Corporate Bond Liquidity
Companies can borrow money by selling corporate bonds to investors.
Kamlesh Shroff said more people should take part in this market.
He especially wants retail investors to learn more about corporate bonds.
More participants could make bonds easier to buy and sell.
This may also help prices reflect the market more accurately.
Shroff said Indian investors have shown more interest in shares than in debt products.
He supported channel partners who could explain bonds and advise investors across the country.
He also said riskometers could help people understand how risky different bonds are.
ANMI President Kamlesh Shroff called for wider participation in India’s corporate bond market.
He said greater retail-investor awareness of bond products and trading volumes could increase participation.
Shroff said India’s equity investment culture has grown faster than its debt-market participation.
Greater market breadth and depth could improve liquidity, order matching and price discovery.
He supported fixed income channel partners and riskometers to help investors understand bond risks.
- Who
- Kamlesh Shroff, president of the Association of NSE Members of India, discussed the issue.
- What
- He called for wider participation and greater retail-investor awareness to improve corporate bond-market liquidity and price discovery.
- Where
- The remarks were reported from New Delhi.
- When
- The comments were made on Thursday; no specific date was provided.
- Why
- Greater participation could increase market breadth and depth, improve order matching and liquidity, and support better price discovery.
Key facts
- Speaker
- Kamlesh Shroff, President of the Association of NSE Members of India
- Market
- India’s corporate bond market
- Main concern
- Limited participation and awareness among retail investors
- Potential benefit
- Improved liquidity and price discovery
- Market comparison
- Equity investing has developed significantly over three decades, while debt-market participation has been slower to grow.
- Proposed support
- Fixed income channel partners could create awareness and advise investors nationwide.
- Risk education
- Riskometers could help investors assess the risks of different corporate bond instruments.
Quotes
Kamlesh Shroff
President, Association of NSE Members of India (ANMI), broker body
“‘Predominantly, the equity cult in our market is far more superior and has built up in the last three decades. The debt market has been very slow in picking it up.’”
freepressjournal.in
thehansindia.com
“‘If you have liquidity, it is when you have a proper market. So, if you don’t have liquidity, your downside is then your prices, price discovery comes into play.’”
freepressjournal.in
Sources
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