The Securities and Exchange Board of India (SEBI) is examining trading in bond derivatives as an initiative to deepen the corporate bond market, according to the regulator’s Chairperson Tuhin Kanta Pandey.
Pandey was speaking at the 15th International Capital Market Convention here on Saturday organised by the Association of National Exchanges Members of India (ANMI).
“We have taken concrete steps to improve the scope of the corporate bond market and are exploring bond derivatives as another initiative to deepen it. We are also facilitating the growth of muni-bonds through regulatory reforms and outreach programs,” he said.
At the event, Pandey emphasised SEBI’s objective to build a smarter regulatory architecture through frameworks such as the Stock Broker’s Regulations 2026 which simplifies compliance reporting, offers operational flexibility, rationalises penalties, and introduces a single-point reporting platform.
Speaking of use of new-age tech, he noted that while the regulator encourages responsible use of AI, “we have to keep in mind that AI can augment judgment but it cannot replace human accountability.”
Among other key developments, Pandey highlighted the Securities Markets Code (SMC), 2025. “The proposed Code marks a transition toward a unified principle-based framework for our capital markets…The smooth implementation of this Code, after it is enacted by Parliament, will require a shared commitment from the regulator and the entire market ecosystem,” he said.
“In parallel, we are rationalising the master circulars that govern Market Infrastructure Institutions(MIIs) to simplify compliance. The exercise for stock exchanges is underway and public consultation for clearing corporations and depositories will follow soon,” he said.
The event was also attended by the heads of Indian exchanges and depositories.
Speaking to mediapersons on the sidelines, Ashishkumar Chauhan, MD and CEO, National Stock Exchange said that the exchange is working on gold dematerialisation through which investors can have gold deposited into a depository, and trade based on it. “This will bring a lot more efficiency into the holding of gold and help in better financialisation of it,” he said.
‘building trust’
Sundararaman Ramamurthy MD and CEO, Bombay Stock Exchange emphasised the need for building trust in the securities market suggesting that many households continue to view the markets are complex and prefer preservations of wealth over returns. “Building trust is no longer philanthropy, it can have a huge business impact. We must focus on financial literacy and leverage digital platforms to build trust,” he said.
At the convention Nehal Vohra, MD & CEO of Central Depository Services Ltd (CDSL) and Vijay Chandok, MD and CEO of National Securities Depository Ltd (NSDL) emphasised how technology led transformation has democratised market participation and highlighted a need to balance rapid growth with resilience, risk management and strong regulatory oversight.