The ‘s (SEBI) Chairman, Tuhin Kanta Pandey, said on Monday, 8 June, that the capital market regulator and the Reserve Bank of India (RBI) are working to launch derivatives on indices to deepen the debt market.
Speaking at ICICI Securities – India Investor Conference 2026, Pandey said that in pursuance of the budget announcement, a working group is sorting out operational details to introduce a market-making framework to improve liquidity in the corporate bond market. “Additionally, SEBI and RBI are working together to introduce derivatives on corporate bond indices,” he added.
He linked the initiative to broader reforms in the corporate bond market architecture. The electronic book provider platform has already been expanded to include issuances by and , improving transparency and efficiency.
The RBI has already laid the groundwork. Pandey noted that the RBI gave draft guidelines on total return swaps and derivatives on corporate bond indices in February, and is now finalising them, according to an ANI report. “RBI is in the process of finalising these guidelines, following which the exchanges will be launching these derivative products on ,” he was quoted as saying by the news agency.
Ease of doing business for foreign investors
Additionally, Sebi chief highlighted the recent efforts to provide easier access for global capital. He said that the market regulator has taken several steps to facilitate foreign investor participation, including the Swagat framework, which provides a single window, streamlined onboarding experience for trusted investors.
He also pointed out that regulatory requirements for FBIs investing in government securities have been eased. “Processes have been simplified through standardized forms, digital signature-based document
submission and tracking mechanisms. We are working with custodian banks and RBI for further substantial reduction in the timelines for FBI registration and onboarding,” Pandey noted.
Pandey highlighted the latest tax exemptions for FPIs on government securities and removal of certain investment limits in corporate debt as steps to facilitate capital flows into the debt market. Enhancements to closing auctions and block deal frameworks have also improved price discovery and liquidity, “especially meeting the concerns of the FPIs.”
With corporate bond issuances exceeding ₹9 trillion in FY26 and market cap at 128% of GDP, he said derivatives on bond indices will give investors better tools to hedge and allocate, as per the ANI report.
At the same time, Pandey acknowledged that India’s capital markets are increasingly becoming a core avenue for household savings and wealth creation.
He highlighted that household participation in capital markets has been rising steadily. Household financial savings to GDP have increased to 21.7% in FY25 from around 20% in FY23.
Such broad-based participation also places a greater responsibility on market design and regulation, he said.
(With inputs from agencies)