3 weeks ago
Corporate bond mobilisation falls 8.4% in FY26: Sebi report
Companies sometimes need to borrow big amounts of money to grow.
They can borrow from banks, or they can sell 'bonds,' which are like promises to pay money back later.
A report from Sebi, India's market watchdog, says companies borrowed a little less this year than last year.
Their bond borrowing fell by about 8.4%.
That is the first drop in several years.
Most bonds were sold privately to big investors instead of to the public.
However, bonds sold to the public actually went up a lot.
Cities also borrowed more by selling municipal bonds to build things.
The bond market still saw lots of trading activity.
So even though total borrowing fell, the market stayed busy.
Corporate bond fund mobilisation in India fell 8.4% to Rs 9.1 lakh crore in FY26, the first contraction since 2021-22, per the Sebi annual report.
The number of corporate bond issuances rose to 1,967 during FY26, with private placements accounting for 98.8% of total funds mobilised.
Public corporate bond issuances grew 39.2% to Rs 11,343 crore across 43 issues, 40 of them from financial-sector entities.
The value of corporate bond trades settled through clearing corporations ICCL and NCL rose 27.9% to Rs 21.2 lakh crore, with listed bonds making up 89.5% of traded value.
Municipal bond mobilisation surged to Rs 1,756 crore in FY26 from Rs 100 crore in FY25, while listed commercial paper rose 7.8% to Rs 16,68,834 crore.
- Who
- The Securities and Exchange Board of India (Sebi), along with Indian corporate issuers and municipal bodies that raised funds.
- What
- Corporate bond fund mobilisation in India fell 8.4% to Rs 9.1 lakh crore in FY26, the first contraction since 2021-22, even as public issuances, municipal bonds and secondary market activity rose.
- Where
- India
- When
- Financial year 2025-26 (FY26), as reported in the Sebi annual report.
- Why
- The report noted the market remained skewed towards private placements with limited secondary market activity and fundraising largely by well-rated entities — challenges long flagged as India cannot grow only on bank funding.
Key facts
- Regulator
- Securities and Exchange Board of India (Sebi)
- Total fund mobilised (FY26)
- Rs 9.1 lakh crore
- Decline in mobilisation
- 8.4% (first since 2021-22)
- Number of issuances
- 1,967
- Private placement share
- 98.8%
- Public issuances
- Rs 11,343 crore, up 39.2%
- Municipal bond mobilisation
- Rs 1,756 crore (FY25: Rs 100 crore)
- Bond trade value settled
- Rs 21.2 lakh crore, up 27.9%
Sources
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